Dive Brief:
- Atlassian acquired enterprise agile planning software company AgileCraft for about $166 million, according to a company announcement Monday.
- The transaction has an April closing date and is expected to contribute $1 million to $2 million to Atlassian's fiscal 2019 revenue. Existing Atlassian and AgileCraft customers include Anthem, AT&T and Fidelity.
- AgileCraft aids companies in building their "master plan" as it relates to workstreams and other projects. AgileCraft's software, similar to Atlassian's tools, tracks developer processes at a "granular level" during agile developments, according to the company.
Dive Insight:
Atlassian has made its name in enterprise productivity software, narrowing its focus to tools that enable collaboration and tracking tasks in development.
Enabling these processes is Atlassian's bread and butter, a commitment the company made when it offloaded its communication services, HipChat and Stride, last year. Slack purchased the intellectual property of the communication platforms, making Slack an even stronger contender in the market.
But AgileCraft fits into the Atlassian's original narrative of streamlining how collaborative work is done. Companies use AgileCraft "to map strategic projects to the distributed work required to deliver them," allowing for more transparencies into progress or risks, according to the announcement.
Atlassian's Jira now has more than 65,000 customers and OpsGenie has more than 138,000 customers, according to Michael Cannon-Brookes, co-founder and co-CEO of Atlassian during the company's Q2 2019 earnings call in January.
Atlassian is "not like most traditional enterprise software companies in that the significant majority of our business is made up of either monthly or annual subscriptions or annual maintenance contracts," said James Beer, CFO, during the call.
More than 85% of new Atlassian customers "come into the cloud" but the company expects that number to rise, said Cannon-Brookes. Atlassian doesn't force customers to migrate to the cloud, which Cannon-Brookes argues works in Atlassian's favor because customers may feel less inclined to use a cloud provider's tools.
