Atlassian To Acquire Video Messaging Platform Loom For Approx. $975 Mln In Cash, Stock

(RTTNews) - Productivity software firm Atlassian Corp. (TEAM) announced Thursday it has entered into a definitive agreement to acquire video messaging platform Loom for approximately $975 million, inclusive of Loom's cash balance, subject to customary adjustments.

The total consideration will be comprised of approximately $880 million in cash, and the remainder in Atlassian equity awards, subject to continued vesting provisions.

For Loom customers, the acquisition will bring the benefit of Atlassian's platform and portfolio of products, allowing users to plug async video directly into key workflows in Jira and systems of record in Confluence.

Atlassian expects to fund the cash consideration through existing cash balances and the transaction is not expected to have an impact on the company's share repurchase strategy.

The transaction is expected to close in the third quarter of Atlassian's fiscal year 2024, subject to customary closing conditions and required regulatory approval.

The acquisition is expected to be slightly dilutive to adjusted operating margins in fiscal years 2024 and 2025.