Frontline project management and collaborative software company, Atlassian, has disclosed that it will be acquiring privately held video messaging platform Loom for about $975 million to improve workplace collaboration tools prompted by the increase in remote work.
Integration of Loom’s technology into Atlassian software such as collaboration tools Jira and Confluence will help users use video in their workflows as the platform helps users record their screens, camera and microphone to make and share videos.
The integration will allow engineers to visually log issues in Jira, and HR teams can onboard new employees using personalized videos.
Loom will however remain available as a separate product despite it’s integration across Atlassian’s suite of tools.
According to Atlassian, acquiring Loom, which has more than 25 million users globally, will enable customers communicate and collaborate more effectively.
Disclosing further that the total acquisition will comprise about $880 million in cash and the rest in shares, the Australia based company said the deal is expected to close in Q3 of it’s fiscal year 2024 and will be funded with existing cash balances.
Stating that async video is the next evolution of team collaboration, Atlassian’s co-Chief Executive Mike Cannon-Brookes, in a news release said teaming up with Loom would help distributed teams communicate in deeply human ways.
Atlassian is presently phasing out sales of on-site software used by corporate customers in their data centers and is also transitioning to a cloud-computing business model.
The move has been described as the company’s biggest acquisition to date.
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Co-founder and co-CEO of software company Atlassian, Scott Farquhar, speaking during a jobs and skills summit at Parliament House on September 1, 2022 in Canberra, Australia.
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