Sydney, Australia-based Atlassian, a provider of team collaboration and productivity software, has lately announced its plans to acquire Loom, a video messaging platform.
Loom says that it has amassed over 25 million users until now. Out of which, the business users alone record almost 5 million videos per month.
According to Atlassian, the shift towards distributed work has fuelled the need for new ways to help teams collaborate when they are not in the same location or hemisphere. Asynchronous video communication is increasing in popularity, with Loom’s business users recording almost 5 million videos per month.
An async video is recorded video content that can be shared for watching later. With distributed teams overloaded with real-time video calls that may be inconvenient, especially in different time zones, async video is emerging as a way to exchange messages and consume video content as per one’s convenience, across different geographies and time zones.
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” said Mike Cannon-Brookes, co-founder and co-CEO of Atlassian.
Atlassian has expertise in how teams work, helping people plan, track and get work done, and the addition of Loom will improve the collaboration experience for teams, the company said.
The acquisition will allow engineers to visually log issues in Jira, leaders to use videos to connect with employees at scale, sales teams to send tailored video updates to clients and HR teams to onboard new employees with personalised welcome videos, Atlassian said.
Additionally, integration of Atlassian’s and Loom’s investments in artificial intelligence will allow users to transition between video, video transcripts, summaries, documents and workflows. Atlassian’s platform and products will enable Loom users to plug async video directly into Jira workflows and systems of record in Confluence.
“Loom’s vision is to empower everyone at work to communicate more effectively wherever they are, and by joining Atlassian, we can accelerate their mission to unleash the potential of every team,” said Joe Thomas, co-founder and CEO of Loom.
As part of the joint agreement, Atlassian will acquire Loom for approximately $975 million. Around $880 million will be 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.