In its biggest acquisition to date, Atlassian on Thursday said it will buy privately held video messaging platform Loom for about $975 million. TEAM stock fell on the deal which aims to improve workplace collaboration tools amid remote work.
Founded in Sydney in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams. Loom, which is based in San Francisco, has more than 25 million users globally.
"Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways," said Atlassian's co-Chief Executive Mike Cannon-Brookes, in a news release.
TEAM Stock: Earnings Due Nov. 2
On the stock market today, TEAM stock fell 6.5% to close at 186.40. Atlassian stock has advanced 45% in 2023.
Third quarter earnings for Atlassian stock are due Nov. 2.
The software maker is transitioning to a cloud-computing business model. Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
Meanwhile, Atlassian stock holds a Relative Strength Rating of 90 out of a best-possible 99, according to IBD Stock Checkup.
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