Atlassian acquires Texas startup AgileCraft, as stock price soars

Aussie unicorn and golden child of the startup scene Atlassian is set to acquire US enterprise planning software provider AgileCraft for $US166 million ($234.7 million), as the NASDAQ-listed tech giant’s shares reach record highs.

Founded in 2013, Texas-based AgileCraft connects different technology operations within a business.

The startup secured $10.1 million in funding in 2015, from private equity firm Crane Nelson.

The deal is expected to add $1-2 million to Atlassian’s revenue for the fiscal year 2019.

In October last year, co-founders Mike Cannon-Brookes and Scott Farquhar topped the Australian Financial Review’s 2018 Young Rich List, more than doubling their wealth over 12 months to a combined $14 billion.

Now, it looks like they’re set to overtake themselves again.

Yesterday, Atlassian’s share price closed at a record high of $US113.4. Today, it closed at $US112.43, giving the business a market cap of almost $27 billion.

In a blog post on the acquisition, AgileCraft founder and chief executive Steve Elliott said he was inspired by Cannon-Brookes and Farquhar.

“It’s humbling to now be a part of that story,” Elliot said.

“Atlassian now offers a complete solution for enterprises to transform, with the tools they need to align teams, drive outcomes and win together,” he added.

“The combined capabilities of our offerings are unmatched in the marketplace today.”

In a statement, Farquhar said its addition will make the tech giant “the best company to help executives align the work across their organisation — providing an all-encompassing view that connects strategy, work, and outcomes.”

Some business leaders are “still making mission-critical decisions using their instincts and best guesses instead of data,” Farquhar said.

“As Atlassian tools spread through organisations, technology leaders need better visibility into work performed by their teams.”

Atlassian isn’t one to snatch up any old company willy nilly. Its last acquisition was in September 2018, when it picked up OpsGenie for $US295 million.

Before that, in January 2017, the company acquired Trello for $US425 million.

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