Atlassian to buy video messaging provider Loom
Summary
Atlassian has agreed to acquire privately held video messaging platform Loom for about US$975 million ($1.5 billion), beefing up its team collaboration tools to tap into resilient demand fuelled by the adoption of hybrid work. Integration of Looms 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 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.
