Atlassian to Acquire OpsGenie to Help IT Teams Manage Service Disruptions
September 04 2018 - 4:13AM
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response to critical IT issues was slowed by inefficient, outdated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.
About Atlassian
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/.
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