Australian enterprise software giant Atlassian has consistently pursued growth through acquisition – boosting revenue by bringing new companies into the fold with related products and complementary skill sets.
The latest of these deals is the $166 million purchase of Austin-based AgileCraft, whose all-in-one Agile management suite will now be absorbed into Atlassian’s extensive range of enterprise software.
The two companies already share a similar customer base, and have existing integrations for some of their most popular tools. In a press release announcing the deal, AgileCraft founder and CEO Steve Elliot spoke of their shared ambition to help enterprises more easily gather and distill information across siloed teams, and effectively scale through Agile transformation:
“Organisations lack the ability to easily gather and distill information across siloed teams – making it extremely difficult to assess progress and measure success,” said Elliott. “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.”
Since bootstrapping the startup off a credit card in 2002, founders Scott Farquhar and Mike Cannon-Brookes have rapidly expanded Atlassian, making a total of 11 acquisitions in tangential and complementary markets, and continually expanding its product range and customer base.
But the purchase of AgileCraft represents a return to its core market. In July last year, the company surrendered its strategic partnership with Slack, and exited the business communications space by discontinuing its two workplace chat products – Stride and HipChat.
Now Atlassian looks to be refocusing its energy on a segment of the enterprise software market that it knows very well: project and portfolio management. As a leading provider of Agile project management software solutions, AgileCraft are a significant player in this segment, which, according to a market report by IDC, is expected to grow at a CAGR of 6.8% to reach a valuation of $5.7 billion by 2022.
About Acuity Advisors
We know technology – that’s why we’re the industry’s trusted M&A advisor. Our partners are senior players in tech and M&A: skilled at getting to the heart of a technology business, understanding what will attract buyers, and building long-lasting relationships. We have an unrivalled understanding of the industry’s complexities and personalities – our track record and client feedback are compelling evidence of that. We’re an international firm – most of our deals are cross-border, from offices in London, Munich, Shanghai and Silicon Valley – but we’re grounded in our approach. We move quickly when it’s needed, and we’re around for the long haul when patience is a virtue. We’ve maintained a very high success rate across hundreds of deals while keeping our focus on doing what’s right for our clients. From first meeting to successful exit, we earn the trust that clients and investors put in us.
© 2019 Acuity Advisors Limited
A conversation is never wasted. We’re confident that we can give you all the help you need, but we’ll tell you if we think there’s a better option for you.Get in Touch