Atlassian to pay $1.5b for video messaging firm Loom

The news: Atlassian has agreed to buy video messaging platform Loom to beef up its team collaboration tools as it taps into resilient demand fueled by the adoption of hybrid work.

The numbers: The Australian software products maker will pay about USD975 million ($1.54 billion) for the privately held Loom, comprising about USD880 million in cash and the rest in shares. Following the news, Atlassian shares ended 6.5% lower on the Nasdaq.

The context: The acquisition — Atlassian’s largest deal ever — will enable its customers to communicate and collaborate more effectively. Loom, which has more than 25 million users globally, makes tools that help users record their screens, camera and microphone to make and share videos. The integration of Loom's technology into Atlassian software tools like Jira and Confluence will help users add video in their workflows. The deal is expected to close in the quarter ending March 2024.