Australia-based Atlassian to acquire Loom for $975m

Atlassian founders Scott Farquhar (left) and Mike Cannon-Brookes / Photo credit: Atlassian

Australia-based software platform Atlassian announced that it is acquiring Loom, the US-based video messaging platform, for US$975 million. Of that amount, US$880 million will be in cash while the remaining will be in equity.

The acquisition is slated to be completed in 2024.

Founded in 2016, Loom is a messaging platform that helps clients communicate through videos.

Its platform also allows users to simultaneously record output from their desktop screen, camera, and microphone and provides AI-enabled transcript services that can write titles, summaries, and chapters and carry out tasks.

The company’s users are typically teams in sales, engineering, design, and marketing, among others.

Meanwhile, Atlassian is an IT service management and work management tool that helps teams organize, discuss, and complete shared work.

By merging Atlassian’s and Loom’s AI initiatives, business clients can switch between videos, transcripts, summaries, and documents, making collaboration easier, Atlassian said in a statement.

The announcement of the acquisition coincides with news of Paranth Thiruvengadam’s appointment as Atlassian’s site leader and head of engineering in India. Thiruvengadam, former CTO at healthtech firm Metlife and SaaS platform Clear, will be in charge of overseeing Atlassian’s 1,700 employees in the country.

In Asia, Atlassian is available in India, Japan, South Korea, and the Philippines, though it operates globally.

In March, the firm laid off 500 people, or 5% of its staff, following a reorganization effort triggered by the economic downturn.

Currently, the Nasdaq-listed company has 260,000 customers, while Loom has 25 million users, according to the statement.

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