Team collaboration software company Atlassian announced today it has agreed to acquire the communications and video platform
platform Loom, in a deal valued at approximately $975 million.
The acquisition involves around $880 million in cash and the remainder in shares. The transaction is set to conclude in the third quarter of Atlassian’s fiscal year 2024 and will be funded using their existing cash reserves, Reuters reported.
Loom is a dynamic work communication and video platform that is revolutionizing team interactions. Unlike Slack, which primarily relies on text-based messages, Loom enables faster communication among colleagues and even with customers by allowing users to create concise video messages. Currently, over 1.8 million individuals across 50,000 companies are using Loom.
We covered back in 2019 when the messaging tech startup raised $30 million in Series B funding led by Sequoia to grow its work communications and video platform.
Founded in 2016 by Joe Thomas, Shahed Khan, and Vinay Hiremath, Loom introduces a fresh approach to work communication, emphasizing shareable video messages. Loom’s platform allows users to capture their screen, record their front-facing camera, and provide narrations in a single video without requiring app switching or uploads. Whether it’s training new team members or responding to customer inquiries, Loom enhances workplace communication by offering a more personal and efficient alternative to written messages.
Loom competes in a competitive market, but with this recent influx of capital, the company is well-positioned to fend off competitors such as Screencast-O-Matic, CloudApp, Applian Technologies, TechSmith, Screencastify, Telestream, Screenpresso – Screen Capture, Idealshare, Box, and Softdiv Software.