Atlassian (NASDAQ:TEAM) has announced it is buying video messaging platform Loom for $975 million aiming to “supercharge team collaboration.”
The software firm noted that privately held Loom has amassed 25 million users, with business users recording almost five million videos a month as the move towards distributed work fuels demand for asynchronous (async) videos.
Async videos allow teams to share video recordings and screens from different locations.
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” commented Atlassian co-CEO Mike Cannon-Brookes.
By integrating both companies’ investments in artificial intelligence (AI), Atlassian said customers will be able to seamlessly transition between video, video transcripts, summaries, documents, and the workflows developed from them. This provides multiple ways for teams to connect and collaborate, it added.
“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,” Loom CEO Joe Thomas added.
Under the terms of the deal, Atlassian will pay $880 million in cash, and the balance of the $975 million in Atlassian equity awards, subject to continued vesting provisions.
The transaction is expected to close in the third quarter of Atlassian’s financial year, which ends in June 2024.
Atlassian’s shares traded 4.5% lower at $190.44 by midday in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com