The acquisition will help Loom's customers to benefit from Atlassian’s platform and portfolio of products as well as enable users to plug async video directly into key workflows in the latter’s Jira software and systems of record in Confluence
Video messaging platform Loom to be acquired by Atlassian in $975m deal. (Credit: Thirteen-fri/Wikimedia Commons)
Atlassian, an Australian team collaboration and productivity software provider, has agreed to acquire video messaging platform Loom in a deal worth nearly $975m.
According to the terms of the definitive agreement, Loom will receive a total consideration of about $880m in cash and the remaining in Atlassian equity awards. It is conditional upon continued vesting provisions.
Established in 2016, Loom helps users to communicate via instantly shareable videos.
Loom is said to offer a seamless user experience and allows users to simultaneously record their desktop screen, camera, and microphone to create documentation of institutional knowledge.
The acquisition will help Loom’s customers to benefit from Atlassian’s platform and portfolio of products. It will allow users to plug async video directly into key workflows within Atlassian’s Jira software and systems of record in Confluence.
Loom co-founder and CEO Joe Thomas said: “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. We’re excited to weave video into collaboration in a way that only Loom + Atlassian can.”
Through the acquisition of Loom, Atlassian aims to further advance the collaboration experience for teams.
Besides, the integration of Atlassian’s and Loom’s investments in artificial intelligence (AI) will enable customers to easily shift between video, video transcripts, summaries, documents, and the workflows developed from them.
It will offer different ways for teams to connect and collaborate.
Atlassian co-founder and co-CEO Mike Cannon-Brookes said: “Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways.”
Atlassian plans to finance the cash consideration through existing cash balances. The deal is not likely to have an impact on its share repurchase strategy, said the company.
Subject to customary conditions and regulatory approval, the deal is anticipated to be completed in the third quarter of Atlassian’s fiscal year 2024.