Atlassian to acquire Loom for $880M in cash, equity awards

Atlassian announced it has entered into a definitive agreement to acquire Loom, the video messaging platform that has amassed more than 25M users and was named among the top 50 of Fast Company’s World’s Most Innovative companies in 2023. Under the terms of the definitive agreement, Atlassian will acquire Loom for approximately $975M, inclusive of Loom’s cash balance, subject to customary adjustments. Total consideration will be comprised of approximately $880M in cash, and the remainder in Atlassian equity awards, subject to continued vesting provisions. 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 non-GAAP operating margins in fiscal years 2024 and 2025.