Atlassian acquired Trello for $425 million. Most of the amount will be in cash, and the rest in stock.
Jay Simmons, company president, justified the deal in an email to Mashable.
“We’re giving teams more choice in the tools they use to support the way they want to work. Trello will become an important part of [our] portfolio, offering a fun, new way for teams to organize the often messy range of information that feeds into great teamwork.”
Atlassian acquired Trello due to its rising stardom. Trello rose quickly. It claims nearly 20 million users.
Trello helps users to organize information into virtual boards. Users make projects or tasks into virtual cards. Each card contains a label of who is working on a project or task. It includes the project status too.
In addition, the company competes with startups and tech giants alike. Competitors include Microsoft to startups alike Asana and Wrike. All of these tools enable workers to manage projects and tasks better.
Trello has about 100 employees. All of them will go to their new employer. Atlassian generated $457 million in revenue, up significantly from the previous fiscal year.
Both companies share some customers and products. But Simmons did not worry. He said many users use both companies’ products for different tasks.
The deal closes by March 31, 2017.
Pundits believe the deal was a wise move.
For example, the tech company reported profits for over a decade straight. Executives point to its self-service sales model as the key to its success. It has been able to spend more money where it counts: on development and research. Plus, it can shift its focus to working with non-technical folks. Over 40,000 organizations including some household names use the company’s team communications and management software.
Atlassian Acquired Trello to Further a Simple Philosophy
Company executives adhere to a simple philosophy according to its co-founder and CEO: either become disrupted by a software company or become one. Plus, the CEO said every company must face the specter of software. Whole business models can face extinction due to new technology or better business processes. His company’s product, JIRA Service Desk, automates workflows. These include legal approvals. This is another step to their goal of helping people communicate better.
Furthermore, clients noticed process improvements — at least by word of mouth. One client said:
“It’s too early to put definitive metrics on the benefits of the system. Anecdotally, it has resulted in improvements in productivity and clearer communication between different parties. We are confident that improvements will come further down the line, but so far they have been difficult to measure because we had very little data to start with. The data was hidden in emails, and on pieces of paper. By centralizing requests onto a single system, the data is now visible. This means we have established a baseline to report on, and use in our planning.”
The company attributes statements like this one to its success.