Atlassian Corporation, a leading provider of team collaboration and productivity software, announced it has entered into a definitive agreement to acquire Loom, the video messaging platform that has amassed more than 25 million users and was named among the top 50 of Fast Company’s World’s Most Innovative companies in 2023.
The global movement towards distributed work has fueled a need for new ways to help teams collaborate when they are not in the same location or even the same hemisphere. Asynchronous (async) video has been at the forefront of this movement with Loom’s business users recording almost 5 million videos per month.
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” said Mike Cannon-Brookes, co-founder and co-CEO of Atlassian.
Atlassian has deep expertise in how teams work. It’s already the go-to place for over 260,000 customers who plan, track and get work done, and the addition of Loom will further elevate 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; sales teams can send tailored video updates to clients and HR teams can onboard new employees with personalized welcome videos.
Furthermore, by integrating Atlassian’s and Loom’s investments in AI, customers will be able to seamlessly transition between video, video transcripts, summaries, documents, and the workflows developed from them, providing multiple ways for teams to connect and collaborate.
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For Loom customers, the acquisition will bring the benefit of Atlassian’s platform and portfolio of products, allowing users to plug async video directly into key workflows in Jira and systems of record in Confluence.
“Loom’s vision is to empower everyone at work to communicate more effectively wherever they are, and by joining Atlassian, we can accelerate their mission to unleash the potential of every team,” said Joe Thomas, co-founder and CEO of Loom. ”We’re excited to weave video into collaboration in a way that only Loom + Atlassian can.”
Details Regarding the Transaction
Under the terms of the definitive agreement, Atlassian will acquire Loom for approximately $975 million, inclusive of Loom’s cash balance, subject to customary adjustments. Total consideration will be comprised of approximately $880 million in cash, and the remainder in Atlassian equity awards, subject to continued vesting provisions.
Atlassian expects to fund the cash consideration through existing cash balances and the transaction is not expected to have an impact on the company’s share repurchase strategy.
The transaction is expected to close in the third quarter of Atlassian’s fiscal year 2024, subject to customary closing conditions and required regulatory approval.
SOURCE: Businesswire