Atlassian is an Australian enterprise software development company. This company develops products for software developers, project managers, content management, and code quality. Recently it is reported that Atlassian has acquired popular app ‘Trello’. Trello is a team productive app that helps its users to keep track of everything from a picture to a minute detail. Atlassian acquired Trello for $425 million.
So far it is the most largest acquisition done by Atlassian as this company went public in 2015. Atlassian is paying $360 in cash and the other remaining amount in the form of stocks to Trello. It is a smart move made by Atlassian as Trello has been doing so well in terms of software market by focusing on teamwork and productivity. it has one million active users per day also it has 19 million registered users in total.
Atlassian also offers its own products for communication like Hipchat, collaborative document creator called Confluence as well as growing suite for CRM tools that includes some of the features that are being offered by Microsoft and Salesforce. Jay Simons President of Atlassian said that both companies share mutual mission as they both want to reach daily 100 million active users in offices around the world.
Simons stated that:
We are perfect home for them, because we are a company that stands for the same thing that they also care about, which is teams. From our perspective, what exciting about them is it’s breakout product that is been incredibly successful.
Trello continues to expand Atlassian’s mission into office workforce apart from company’s developer’s teams. Atlassian is already giving competitive edge to other companies. Its Hipchat is giving competition to other communication app ‘Slack’ as well as to Microsoft, Google, Salesforce and Facebook by providing communication tools into Confluence. Simons also believes that Trello will slot in between those products that are “free form ideas”.
According to reports, Atlassian earned $457 million revenue for 2016 with 43% estimated growth year by year. The company spent 38% of revenue on Research and Development. According to President of the company, “We are over-indexed on R&D because we think around workplace technology you always have to be reinventing” . Atlassian acquired Trello just after two months when project management software challenger Asana announced ‘Boards’. Asana is been led by Facebook co founder Dustin Moskovitz and an early employee Justin Rosenstein, Asana raise $50 million last March.
Unlike Asana, Trello had not raised any funding since $10 million three years back in July 2014. Well Trello does not need any outsourcing in terms of money as company’s bank account posses enough money to raise a new round. More to it Trello will remain a standalone company.
Simons argues that selling of Trello to Atlassian is what there vision is “The business model is very similar: we’re both chasing the high volume, high velocity, land inside a team and expand through the business going deeply technical and deeply non-technical. You look at a company and see a reflection of yourself there.” This acquisition is an standout example to the enterprise software market. Trello wasn’t as much pricey as it has fetched higher price from Atlassian which Atlassian was not likely willing to pay.