SAN FRANCISCO--(BUSINESS WIRE)--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 OpsGenie, Inc., whose technology enables companies to better plan for and respond to IT service disruptions.
Dealing with IT outages and downtime is one of the biggest technical challenges of the modern era, costing North American businesses an estimated $700 billion per year1. Today's world of interconnected cloud services and microservice architectures has created infinitely more opportunities for something to go wrong and disrupt service. When that happens, there's an urgent need to alert the right people or teams to fix things. OpsGenie's technology quickly routes alerts to the appropriate IT teams, speeding diagnosis and resolution, and reducing downtime.
Atlassian today also introduced Jira Ops, an end-to-end incident management platform. OpsGenie is already directly integrated into Jira Ops and will be available from day one. That means Atlassian is able to offer customers a much simpler approach to dealing with service disruptions – a one-stop shop to manage incident response.
The acquisition of OpsGenie also underscores Atlassian's strategic focus on the IT market.
"We view the IT market as a major opportunity for Atlassian," said Scott Farquhar, Atlassian’s co-founder and co-CEO. "We're committed to supporting the needs of IT teams across companies of all sizes, and helping them quickly address service issues is critical. OpsGenie helps companies react to the flood of alerts they’re receiving in a much smarter way."
"At OpsGenie, we saw an opportunity to help companies whose response to critical IT issues was slowed by inefficient, outdated processes and technology," said Berkay Mollamustafaoglu, OpsGenie's co-founder and CEO. "We have dramatically grown our customer base to more than 3,000 around the world, and have built an outstanding team. We're excited to join the Atlassian family and continue to help our customers cope with increasingly complex operational challenges."
OpsGenie was founded in 2012 and is based in Boston, with offices in Falls Church, Va., and Ankara, Turkey.
1IHS report, 2016
Details Regarding the Transaction
The acquisition is valued at approximately $295 million, comprising approximately $259M in cash and the remainder in Atlassian restricted shares, subject to continued vesting provisions.
The transaction is expected to close in October, subject to certain closing conditions.
For fiscal 2019, the acquisition is expected to add approximately one percentage point of revenue to the target revenue range of approximately $1,146 to $1,154 million previously provided on Atlassian's fourth quarter fiscal 2018 earnings announcement on July 26, 2018. Additionally, for fiscal 2019, the acquisition is expected to be dilutive to IFRS operating margin and earnings per share, and neutral to non-IFRS operating margin and earnings per share. 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 OpsGenie, 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 incident response management, the IT market, and other anticipated benefits of the transaction to Atlassian and to the combined companies; potential benefits of the transaction to Atlassian and OpsGenie customers; the ability of Atlassian and OpsGenie to close the announced transaction and the timing of the closing of the transaction; OpsGenie'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 OpsGenie'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 20-F 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 125,000 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, and Jira Service Desk at https://atlassian.com/.