Atlassian buys Loom for $987M to expand collaboration tools

Atlassian buys Loom for $987M to expand collaboration tools

Atlassian is acquiring Loom for $987 million (935 million euros). Loom specializes in video messaging. The startup’s technology will be integrated into the Jira and Confluence collaboration tools, among others.

Through the acquisition of Loom, Atlassian also lays claim to its asynchronous video messaging technology. This allows users to communicate and collaborate with each other via instantly shareable videos.

Applications of such video messages include onboarding new employees, reviewing programming code, sharing feedback, explaining documents and meetings with the entire “all-hands” staff, wherever employees are.

Growth of remote working

Part of Atlassian’s bet on Loom relies on remote work continuing to grow. This has inevitably meant that employees increasingly depend on tools that allow them to work together within a team, in different countries and from different time zones. Applications like those developed by Loom can help considerably in this regard, Atlassian concludes.

Loom’s technology will be integrated into Atlassian’s existing Jira and Confluence platforms. Loom will also continue to be available as a stand-alone solution.

Atlassian’s largest acquisition

Experts say the acquisition of Loom is Atlassian’s biggest to date. For the startup, the collaboration specialist is paying $880 million in cash. The rest of the acquisition amount will be financed through equity awards. The acquisition is to be finalized in March 2024.

Also read: Atlassian patches highly critical zero-day in Confluence software