Atlassian to buy video messaging provider Loom for nearly $1 billion
(Reuters) -Atlassian said on Thursday it had agreed to acquire privately held video messaging platform Loom for about $975 million, beefing up its team collaboration tools to tap into resilient demand fueled by the adoption of hybrid work.
Integration of Loom's technology into Atlassian software such as collaboration tools Jira and Confluence will help users use video in their workflows.
The acquisition of Loom, which has more than 25 million users globally, will enable customers communicate and collaborate more effectively, Atlassian said.
The company's shares fell 1% in premarket trading.
Loom, which counts Sequoia, Kleiner Perkins and a16z among its investors, makes tools that help users record their screens, camera and microphone to make and share videos.
The total consideration will comprise about $880 million in cash and the rest in shares.
The deal is expected to close in the quarter-ending March 2024 and will be funded with existing cash balances, Atlassian said.
The Australia-based company said it expects the acquisition to dilute operating margins in fiscal years ending June 2024 and 2025.
(Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila)
