Atlassian founders Mike Cannon-Brookes and Scott Farquhar worth $10 billion each after record stock rise


This would allow Atlassian to gain a larger share of business from customers as they expand their use of technology, and “agile” tech work practices, across their business with digital transformation projects.

“Gone are the days when digital transformation was an option for companies. It’s now a requirement,” said Mr Farquhar in a blog explaining the purchase.

“With AgileCraft, leaders can examine their entire business to assess where they should be making strategic bets, like adding 10 per cent more funding to a mobile project that’s showing strong initial results, or dialling back on an integration initiative that’s not generating the forecasted customer value,” he said.

It will not be cheap for Atlassian, which is paying AgileCraft investors $US154 million cash and another $US12 million in restricted shares.

AgileCraft is expected to add as little as $US1 million to Atlassian’s revenues between the transaction closing next month and the end of the June 30 financial year.

Atlassian, which is expecting revenue to top the billion-dollar mark for the first time this financial year, is now worth $US26.6 billion. Mr Cannon-Brookes and Mr Farquhar own about 30 per cent each.

In January, it reported that revenue was up 39 per cent to $US299 million ($415 million) for the December quarter with an operating loss of $US3.2 million, down from a $US13 million loss for the same period last year.

It has forecast that total revenue for the current financial year will be up to $US1.199 billion.

Most of Atlassian’s business is generated from popular tools like Jira, which tracks software development tasks, and Bitbucket, which allows developers to collaborate on software code and store it.

Atlassian is facing increasing competition from tech giants like Microsoft and Salesforce.

Last year, Microsoft spent $US7.5 billion on startup GitHub which makes similar tools to Jira and Bitbucket.

Colin Kruger is a business reporter. He joined the Sydney Morning Herald in 1999 as its technology editor. Other roles have included the Herald’s deputy business editor and online business editor.

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