Work management software provider Atlassian has acquired video messaging platform Loom for US$975 million.
Total consideration for Loom will be approximately US$880 million in cash, and the remainder in Atlassian equity awards, subject to continued vesting provisions.
Founded in 2016, San Francisco-based Loom is a video messaging platform that helps users communicate through instantly shareable videos.
According to a statement, Loom has more than 25 million users with business users recording almost five million videos per month.
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” Atlassian co-founder and co-CEO Mike Cannon-Brookes said.
Atlassian has more than 260,000 customers who plan, track and get work done, and the addition of Loom will further elevate the collaboration experience for teams.
Soon, engineers will be able to visually log issues in Jira; leaders can use videos to connect with employees at scale; sales teams can send tailored video updates to clients and HR teams can onboard new employees with personalised welcome videos.
Furthermore, by integrating Atlassian’s and Loom’s investments in AI, customers will be able to seamlessly transition between video, video transcripts, summaries, documents, and the workflows developed from them, providing multiple ways for teams to connect and collaborate.
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.
“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.”
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.