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 Trello, a breakout
collaboration service that has amassed more than 19 million
registered users in just five years. Trello has pioneered an
intuitive, visual system that solves the challenge
of capturing and adding structure to fluid,
fast-forming work for teams. The service has been rapidly
adopted in more than 100 countries around the world by a wide range
of teams, from disaster relief agencies in the U.K. to a cafe
in Brazil. The acquisition will expand Atlassian’s leadership
in powering all types of teamwork, and adds a new collaboration
service - popular with business teams - to the company’s
enterprise-grade project tracking (JIRA), content (Confluence) and
communication (HipChat) products used by more than 65,000
organizations in 170 countries.
A recent Ernst and Young study shows approximately 90% of
companies are confronting problems so complex they can only be
solved by teams. To help businesses unlock the potential of their
teams, Atlassian is building the foundation for all work to be
started and completed more efficiently. With 14 years of
experience helping teams organize, discuss and complete work,
Atlassian's suite of services supports all types of teamwork,
from ad-hoc information sharing and planning to highly structured
collaborative workflows like new hire on-boarding and internal help
desks. Trello will be a key product in the Atlassian portfolio,
providing a new way for teams to organize and prioritize the often
complex range of information and idea sharing that feeds into great
teamwork.
"Atlassian knows more about how teams work than any company on
the planet, which is why our collaboration suite powers teams of
all shapes and sizes, from bleeding-edge startups to the Fortune
50," said Mike Cannon-Brookes, Atlassian's co-Founder and
co-CEO. "There is no silver bullet for teamwork. Teams have
diverse ways of working and require a broad set of tools that adapt
to their specific needs. Trello has built an incredibly sticky and
useful product for organizing nearly any type of information simply
and quickly. The addition of Trello will be a great complement to
our existing portfolio of team collaboration software as we look to
reach the 1 billion knowledge workers globally."
Trello is one of the fastest growing cloud collaboration
services, nearly doubling its registered users to 19 million over
the past year. Its simple versatility does for the new era of team
productivity what Microsoft Excel did for the previous era of
individual productivity. Similar to how Excel’s powerful simplicity
was applied to everything from shopping lists to Fortune 100
financial models, Trello is reshaping how a wide variety of
information is organized and shared between teams from the United
Nations and Red Cross to Google, Fender Music, John Deere and
National Geographic.
Through virtual 'sticky notes' and digital whiteboards for
organization and prioritization of
work, Trello's easy-to-use software has proven especially
popular with business teams, including Finance, HR, Legal,
Marketing and Sales. More than 50 percent of Trello's users work in
non-technical functions, and the versatility of Trello extends well
beyond office walls, providing a tool for personal as well as
professional projects.
“We share Atlassian's mission of unleashing the power of all
teams. As part of Atlassian, we will accelerate our efforts and
continue to champion teams everywhere," said Michael Pryor,
Trello's CEO. “Atlassian’s deep investments in research and
development will help augment Trello's product offering. And the
broader team collaboration portfolio Trello will integrate with
will let us help customers in new and exciting ways.”
New Trello Integrations for Atlassian
Products
In addition to launching a new version of its existing Trello
integration for HipChat, Atlassian will be launching Trello
integrations for its other leading collaboration products,
including JIRA Software, Confluence and Bitbucket. The integrations
will be available in the Atlassian Marketplace, which is one
of the largest enterprise software marketplaces in the world
along with Amazon's AWS Marketplace and Salesforce.com's
AppExchange. The Atlassian Marketplace includes more than 2,000
add-ons and extensions and has generated more than $200 million in
lifetime sales.
Details Regarding the Transaction
The acquisition is valued at approximately $425 million, which
is comprised of approximately $360 million in cash and the
remainder in Atlassian restricted shares, restricted share units
and options to acquire Atlassian shares, all subject to continued
vesting provisions.
The transaction is expected to close in the third quarter of
fiscal 2017 ending March 31, 2017, subject to certain
closing conditions and regulatory clearance.
For fiscal 2017, the acquisition is expected to be dilutive to
IFRS earnings per share and to non-IFRS earnings per share. For
fiscal 2018, the acquisition is expected to be dilutive to IFRS
earnings per share and neutral to slightly accretive to non-IFRS
earnings per share. These estimates reflect a reduction
relating to fair value adjustments to acquired deferred
revenue.
Trello is expected to remain as a standalone service after the
transaction is closed.
The company plans to discuss further details on the transaction
on January 19, 2017 as part of its second quarter fiscal
2017 quarterly earnings conference call for the quarter ended
December 31, 2016.
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 Trello, 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 in powering all types of
teamwork and other anticipated benefits of the transaction to
Atlassian and to the combined companies; potential benefits of the
transaction to Atlassian and Trello customers, the ability of
Atlassian to launch Trello integrations for its existing
collaboration services; the ability of Atlassian and Trello to
close the announced transaction and the timing of the closing of
the transaction; 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 Trello’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 Forms 20-F and 6-K 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.
About Atlassian
Atlassian unleashes the potential in every team.
Our collaboration software helps teams organize, discuss
and complete shared work. Teams at more than 65,000 large and
small organizations – including Citigroup, eBay,
Coca-Cola, VISA, BMW and NASA – use Atlassian’s
project tracking, content creation and sharing, real-time
communication and service management products to work better
together and deliver quality results on time. Learn about
products including JIRA Software, Confluence, HipChat, Bitbucket
and JIRA Service Desk at https://atlassian.com.
About Trello
Trusted by millions, Trello is an online tool that offers a
visual, flexible, and collaborative way to manage projects and get
organized. Trello provides perspective and structure to users’
lives by giving them a broad overview and understanding of how and
what needs to be done. Launched in 2011, Trello has over 19 million
users and raised $10.3 million in 2014, led by Index Ventures and
Spark Capital. To learn more about Trello,
visit www.trello.com and @trello.
Investor Relations Contact
Ian Lee
IR@atlassian.com
Media Contact
Paul Loeffler
press@atlassian dot com
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