Atlassian announced it has entered into a definitive agreement to acquire Loom, the video messaging platform that has garnered over 25 million users and earned a place in Fast Company’s list of the top 50 most innovative companies in 2023.
This acquisition will broaden Atlassian’s software portfolio, which already encompasses substantial work-oriented collaboration tools like Jira, Confluence, and Trello. The company has expressed its intention to incorporate Loom’s features into these and other products, although it has not disclosed a precise timeline for this integration.
Launched in June 2016 by Joe Thomas Jr. Shahed Khan and Vinay Hiremath, Loom currently has 25 million registered users who have recorded more than 1.5 billion minutes across over 200k paid customers globally.
“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,” said Joe Thomas, co-founder and CEO of Loom. ”We’re excited to weave video into collaboration in a way that only Loom + Atlassian can.”
“We have been using Atlassian software since we were fresh out of college. When we started Loom, we studied Atlassian as the innovators of the product-led growth motion. It is an incredible opportunity and honor to help Atlassian unleash the potential of every team around the world. We look forward to the years ahead and continuing to serve our amazing customers,” said Thomas and Hiremath in a blog post announcing the deal.
By the close of 2022, following the pandemic-induced surge, the company reported a user base of over 18 million, encompassing in excess of 350,000 businesses. In the current year, Hiremath noted that the platform is experiencing a monthly increase of over 7 million Loom recordings, a significant rise from the 1 million recorded in 2019.
We will continue to ship new product value to the @loom platform. We will also be integrating deeply across Atlassian’s products. The distribution Atlassian can provide Loom and vice versa is going to create a lot of customer value that would take much longer to create solo.— Vinay Hiremath (@vhmth) October 12, 2023
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” said Mike Cannon-Brookes, co-founder and co-CEO of Atlassian.
As outlined in the formal agreement, Atlassian is set to purchase Loom for around $975 million, which includes Loom’s existing cash holdings, subject to standard adjustments. The overall consideration will consist of approximately $880 million in cash, with the remaining portion in the form of Atlassian equity awards, contingent upon ongoing vesting requirements.
The acquisition is expected to close in the quarter ending March 2024.