Atlassian has acquired OpsGenie, a start-up which makes tools to help IT teams better manage outages, for $295 million (AU$411 million).
The Australian tech giant will pay $259 million in cash and the remainder in Atlassian restricted shares. Shares in the Nasdaq-listed company rose 2 per cent after the deal was announced.
Founded in Boston in 2012, OpsGenie’s technology helps companies resolves critical IT issues by quickly routes alerts to the appropriate IT teams, speeding diagnosis and resolution, and reducing downtime.
The acquisition of OpsGenie also underscores Atlassian’s strategic focus on the IT market. Dealing with IT outages and downtime costs North American business US$700 billion a year, the company said.
According to Gartner, spending on IT Service Management tools in Australia increased 30 per cent in 2017 to reach just over US$100 million.
Atlassian also announced it will launch Jira Ops, an incident command centre, to give response teams a central place to coordinate their work during a major IT incident.
“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.”
The company expects OpsGenie will add about one percentage point of revenue to its target revenue range of US$1.146 billion to $US$1.154 billion in FY19.
OpsGenie has more than 3,000 customers, including Air Canada, The Washington Post, and 7-Eleven and has offices in Falls Chruch, Virginia and Ankara, Turkey.
Berkay Mollamustafaoglu, OpsGenie’s co-founder and CEO, said, “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.”
The transaction is expected to close in October.