Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today 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.
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.
The acquisition is expected to be slightly dilutive to non-GAAP operating margins in fiscal years 2024 and 2025.
Founded in 2016, Loom is a video messaging platform that helps users communicate through instantly shareable videos. Known for their ease of use, users simultaneously record their desktop screen, camera, and microphone creating rich documentation of institutional knowledge. With transcripts in 50+ languages and AI features that write titles, summaries, chapters, and tasks, Loom videos become important company know-how to be shared, reused, and self-served across teams.
Sharing many similarities with Atlassian’s mission, product-led go-to-market motion, and culture, today Loom serves over 200,000 customers.
For further details on the announcement from Mike Cannon-Brookes, head to Atlassian’s Work Life blog.
Atlassian unleashes the potential of every team. Our agile & DevOps, IT service management and work management software helps teams organize, discuss, and complete shared work. The majority of the Fortune 500 and over 260,000 companies of all sizes worldwide - including NASA, Kiva, Deutsche Bank, and Salesforce - rely on our solutions to help their teams work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Jira Service Management, Trello, Bitbucket, and Jira Align at https://atlassian.com.
This press release contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, which are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: Atlassian’s ability to successfully integrate the business, technology, product, personnel and operations of Loom, and to achieve the expected benefits of the acquisition; the ability of Atlassian to extend its leadership in the team collaboration and productivity software space; the potential benefits of the transaction to Atlassian and Loom customers; anticipated new features and solutions that will become available; the ability of Atlassian and Loom to close the announced transaction and the expected timing of the closing of the transaction; the ability to integrate Atlassian’s and Loom’s technology, including in AI investment; the financial statement impact of the transaction on Atlassian, including any impact on its share repurchase strategy; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.
Atlassian undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties associated with Atlassian’s and Loom’s business materialize or if any of the assumptions prove incorrect, actual results could differ materially from the results expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.
Further information on factors that could affect the expected results of the transaction is included in filings Atlassian makes with the Securities and Exchange Commission (the “SEC”) from time to time, including the section titled “Risk Factors” in its most recently filed Forms 10-K and 10-Q. These documents are available on the SEC Filings section of the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.