Atlassian, the software company known for its focus on team collaboration and productivity, has announced its agreement to acquire the video messaging platform, Loom. The deal, valued at $975 million, will combine Atlassian's strengths with Loom's innovative asynchronous video technology.
The Acquisition Details
The transaction will consist of approximately $880 million in cash and the remainder in Atlassian equity awards. This includes Loom's cash balance and aims to ensure a smooth transition and integration of the two companies.
Embracing Asynchronous Video
Loom has gained recognition for pioneering asynchronous video, also known as "async" video. With this technology, users can leave video recordings for their teammates, enhancing communication within distributed teams. Co-Chief Executive Mike Cannon-Brookes believes that async video is the next evolution of team collaboration and emphasizes its ability to facilitate deeply human connections.
Future Plans and Financing
Atlassian intends to finance the cash consideration of the acquisition with its existing cash balances. The company assures that this purchase will not impact its share repurchase strategy. By leveraging its resources and strategic vision, Atlassian aims to successfully incorporate Loom into its ecosystem.
The acquisition is anticipated to be finalized in the third quarter of Atlassian's fiscal 2024, which began on July 1. This indicates that the two companies are actively working towards completing the necessary processes and approvals.
Atlassian's acquisition of Loom marks a significant step towards advancing team collaboration and productivity. By embracing the power of async video, Atlassian aims to empower distributed teams to communicate in more meaningful and efficient ways. With this partnership, both companies are set to drive innovation and enhance the future of team collaboration.
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