Atlassian to acquire video messaging platform Loom in $975M deal
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Atlassian (NASDAQ:TEAM) is acquiring video messaging platform Loom for about $975M, including the San Francisco-based company's cash balance.
The deal will consist of about $880M in cash, and the remaining in Atlassian equity awards, subject to continued vesting provisions.
Australia-based Atlassian said Loom's addition will boost the collaboration experience for teams. Soon, engineers will be able to visually log issues in Jira, leaders can use videos to connect with employees at scale, and sales teams can send video updates to clients, among other things.
"Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways," said Atlassian's Co-Founder and Co-CEO Cannon-Brookes.
The companies noted that by integrating Atlassian's and Loom's investments in AI, customers will be able to transition between video, video transcripts, summaries, documents, and the workflows developed from them.
Atlassian expects to fund the cash part of the transaction through existing cash balances. The transaction is not expected to have an impact on the company's share buyback strategy.
The deal is expected to close in Q3 of Atlassian's fiscal year 2024.
Atlassian noted that the acquisition is expected to be slightly dilutive to non-GAAP operating margins in fiscal years 2024 and 2025.
TEAM -0.38% to $198.70 premarket Oct. 12

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