Atlassian to Buy Trello Maker for $425 Million

Atlassian to Buy Trello Maker for $425 Million

Foto: Fotolia

Atlassian, maker of work collaboration software Jira and HipChat, agreed to acquire Trello, which offers a popular project management app, for $425 million, according to Bloomberg. The purchase price consists of $360 million in cash and the rest in restricted stock and options, said Atlassian President Jay Simons in an interview.

The deal may increase earnings, excluding some costs, in Atlassian's fiscal 2018 year. It's expected to close this quarter, subject to regulatory approval and certain closing conditions, Atlassian said. Trello's app offers digital post-it notes and whiteboards to organize tasks and priorities. It has 19 million users, a number that almost doubled in the past year. The startup sells free and paid versions and the products will remain standalone offerings after the deal.

Atlassian, founded in 2002 in Sydney, began as a maker of programs that help engineers and technical workers collaborate and track projects. The company, forecast by analysts to top $600 million in sales this fiscal year, went public in 2015 and is trying to broaden its appeal to more types of workers to grow sales and fend off competition. In 2012, Atlassian purchased HipChat, a corporate messaging program that competes with Slack. Atlassian shares are up 18 percent from its $21 IPO price.

New York-based Trello was spun out of Fog Creek Software in 2014 and has about 100 employees. It's raised $10 million from backers including venture capital firms Index Ventures and Spark Capital. Chief Executive Officer Michael Pryor will join Atlassian and report to its co-CEO Mike Cannon-Brookes. Trello's software is more structured and formal than Atlassian's Confluence product, but less so than Jira. That makes it a good addition to fill out the product lineup, Simons said, noting that some customers use all three for different things.

More from category

Blockchain and AI: the Tech Trends at DES2017

Blockchain and AI: the Tech Trends at DES2017

27 Apr 2017 comment

DES, Digital Business World Congress 2017, the biggest international meeting on digital transformation, which will be held in Madrid on 23, 24 and 25 May, has revealed the structure for the event.

SAP Sales Rise Again

SAP Sales Rise Again

27 Apr 2017 comment

SAP’s sales topped analysts’ estimates for the fourth straight quarter, as business software spending grew, though the costs of transitioning to a web-delivered model weighed on profitability, according to Bloomberg.

Swedish Carriers Raided by EU Over Anti-Competition Concerns

Swedish Carriers Raided by EU Over Anti-Competition Concerns

27 Apr 2017 comment

Sweden’s biggest mobile-phone companies were raided by European Union antitrust investigators over concerns they may have conspired to prevent others from offering services to consumers, according to Bloomberg.