Atlassian to Acquire AgileCraft to Help Executives Align Strategy to Execution
SAN FRANCISCO--(BUSINESS WIRE)--Mar 18, 2019--Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced it has entered into a definitive agreement to acquire AgileCraft, a leading provider of enterprise agile planning software. AgileCraft helps enterprise organizations build and manage a ‘master plan’ of their most strategic projects and workstreams. Business leaders use AgileCraft to map strategic projects to the distributed work required to deliver them, providing better visibility into bottlenecks, risks and dependencies, and more accuracy around capacity planning and measuring return on investment.
AgileCraft helps business leaders answer the most important questions around their most critical projects:
- what’s the true cost and expected value of the important work being driven by teams inside my company?
- what does the overall roadmap look like for company-wide strategic imperatives?
- what are the major dependencies and risks associated with what we’re trying to deliver?
- how can we move faster, or do more with less?
- how does work at the team level align with the company’s top objectives?
In every industry, there is increased pressure to respond to customers faster, increase the speed of innovation, and find new approaches to working. This pressure is amplified in large enterprises as they race to leverage technology to enhance customer experiences and adapt faster to new competitors and market conditions.
Atlassian tools are already at the forefront of enabling agile transformation for more than two-thirds of the Fortune 500. In particular, Jira serves as the collaborative backbone for how modern engineering and IT teams plan and execute work. AgileCraft helps connect the work of these teams to the business objectives and strategic outcomes of the entire enterprise. This alignment is a critical linchpin in helping large organizations move faster and scale the benefits of agile teamwork more widely across their companies. Many companies, including Anthem, AT&T, Dimension Data, Fidelity, and Nielsen, already trust Atlassian and AgileCraft to scale strategic direction and align top to bottom.
“Many leaders are still making mission-critical decisions using their instincts and best guesses instead of data,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “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.”
“Organizations lack the ability to easily gather and distill information across siloed teams – making it extremely difficult to assess progress and measure success,” said Steve Elliott, AgileCraft founder and CEO. “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.”
AgileCraft was founded in 2013 and is based in Georgetown, Texas.
Details Regarding the Transaction
The acquisition is valued at approximately $166 million, comprising approximately $154 million in cash, and the remainder in Atlassian restricted shares, subject to continued vesting provisions. The purchase price under the definitive agreement is subject to customary adjustments.
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. The acquisition is also expected to be dilutive to the company’s IFRS and non-IFRS operating margin in fiscal 2020. These estimates reflect a reduction relating to fair value adjustments to acquired deferred revenue.
Forward-Looking Statements Disclosure
This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks, uncertainties and other factors, including risks and uncertainties related to Atlassian’s ability to integrate the business, technology, products, personnel and operations of AgileCraft, and the financial statement impact of the transaction on Atlassian. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements regarding: the ability of Atlassian to extend its leadership into enterprise agile planning software and other anticipated benefits of the transaction to Atlassian and to the combined companies; potential benefits of the transaction to Atlassian and AgileCraft customers; the ability of Atlassian and AgileCraft to close the announced transaction and the timing of the closing of the transaction; AgileCraft’s technology; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These risks, uncertainties and other factors, and the general risks associated with Atlassian’s and AgileCraft’s business, could cause actual results to differ materially from those stated or implied in these forward-looking statements. For a discussion of these and other risks and uncertainties, you should refer to Atlassian’s most recent Form 6-K (reporting our quarterly results) filed with the Securities and Exchange Commission as well as other documents that may be filed by Atlassian from time to time with the Securities and Exchange Commission. Atlassian undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Atlassian’s results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.
Atlassian unleashes the potential of every team. Our team collaboration and productivity software helps teams organize, discuss and complete shared work. Teams at more than 138,000 customers, across large and small organizations - including General Motors, Walmart Labs, Bank of America Merrill Lynch, Lyft, Verizon, Spotify and NASA - use Atlassian’s project tracking, content creation and sharing, and service management products to work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Trello, Bitbucket, Opsgenie and Jira Service Desk, at https://atlassian.com/
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SOURCE: Atlassian Corporation Plc
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PUB: 03/18/2019 04:05 PM/DISC: 03/18/2019 04:05 PM