Atlassian To Acquire Loom To Supercharge Team Collaboration For ~$975M, $880M In Cash And The Remainder In Co Equity Awards
Portfolio Pulse from Benzinga Newsdesk
Atlassian Corporation (NASDAQ:TEAM) has announced its plans to acquire video messaging platform Loom for approximately $975 million, with $880 million in cash and the remainder in Atlassian equity awards. The acquisition is expected to enhance team collaboration and productivity, with Loom's async video technology being integrated into Atlassian's existing workflows. The transaction is expected to close in the third quarter of Atlassian's fiscal year 2024.
October 12, 2023 | 12:33 pm
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Atlassian's acquisition of Loom is expected to enhance its team collaboration and productivity offerings. However, the acquisition is expected to be slightly dilutive to non-GAAP operating margins in fiscal years 2024 and 2025.
The acquisition of Loom is expected to enhance Atlassian's product offerings, potentially attracting more customers and increasing revenues. However, the financial impact of the acquisition, which is expected to be slightly dilutive to non-GAAP operating margins in fiscal years 2024 and 2025, could negatively affect Atlassian's profitability in the short term.
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