Video chat platform Loom to be acquired by Australian Atlassian for $975 M

The US-based video chat platform Loom will be acquired by Australia-based software company Atlassian for US $975 million. Out of that total, US $880 million will be paid in cash and the rest in stock.

In 2024, the transaction is expected to be finished.

Loom is a messaging service that encourages video communication and was founded in 2016.

Its platform also offers AI-enabled transcript services that can compose titles, summaries, and chapters as well as do other activities, and users can record output from their desktop screen, camera, and microphone at the same time.

Users of the company’s services include, among others, sales, engineering, design, and marketing teams.

Atlassian, on the other hand, is a work management and IT service management application that aids teams in planning, debating, and completing shared tasks.

Business clients will be able to flip between videos, transcripts, summaries, and documents thanks to the integration of Atlassian and Loom’s AI initiatives, according to a statement from Atlassian.

The news of Paranth Thiruvengadam’s appointment as Atlassian’s site leader and head of engineering in India was also announced at the same time as the acquisition. Thiruvengadam, a former CTO of SaaS provider Clear and the healthtech company Metlife will be in charge of managing the 1,700 employees of Atlassian in the nation.

Although it works globally, Atlassian is accessible in Asia- India, Japan, South Korea, and the Philippines.

500 employees, or 5% of the company’s workforce, were let go in March as a result of reorganization efforts brought on by the recession.

According to the announcement, Loom now has 25 million users, whilst the Nasdaq-listed business has 260,000 customers.