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One of Australia's most renowned tech unicorns on the global stage is set to boost its workforce productivity software offering through the US$166 million ($234 million) purchase of Texas-based AgileCraft.
Atlassian Corporation (NASDAQ:TEAM) is a major provider of team collaboration and productivity software, and its Sydney-based founders Mike Cannon Brookes and Scott Farquhar (pictured) topped last year's Australia's Top 100 Young Entrepreneurs list published by Business News Australia.
The Aussie tech company is perhaps best known for its Jira software, which tracks the work of modern engineering and IT teams.
The agreement entered to acquire AgileCraft could broaden Atlassian's offering to help enterprise organisations build and manage master plans for their strategic projects and workstreams, taking into account the time required while providing more accuracy for measuring return on investment and assessing bottlenecks and risks.
"Many leaders are still making mission-critical decisions using their instincts and best guesses instead of data," says Farquhar, who is co-CEO at Atlassian.
"As Atlassian tools spread through organizations, technology leaders need better visibility into work performed by their teams.
"With AgileCraft joining Atlassian, we believe we're the best company to help executives align the work across their organization - providing an all-encompassing view that connects strategy, work, and outcomes."
AgileCraft founder and CEO Steve Elliott says organisations lack the ability to easily gather and distill information across siloed teams, making it difficult to assess progress and measure success.
"We're excited to be joining the Atlassian family to enable the new digital enterprise, which is able to connect teams and align strategy to outcomes," Elliott says.
The purchase price is a combination of $154 million in cash and the remainder in Atlassian restricted shares, subject to continued vesting provisions.
The transaction is expected to close in April, subject to certain closing conditions.
For fiscal 2019, the acquisition is expected to add approximately $1-2 million to Atlassian's revenue.
Additionally, for fiscal 2019, the acquisition is expected to reduce Atlassian's IFRS operating margin by approximately one point and reduce non-IFRS operating margin by approximately half a point.
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