Atlassian to acquire OpsGenie to help IT teams manage service disruptions
Atlassian announced it has entered into a definitive agreement to acquire OpsGenie.
Dealing with IT outages and downtime is one of the biggest technical challenges of the modern era, costing North American businesses an estimated $700 billion per year.
Today’s world of interconnected cloud services and microservice architectures has created more opportunities for something to go wrong and disrupt service.
When that happens, there’s a need to alert the right people or teams to fix things. OpsGenie’s technology routes alerts to the IT teams, speeding diagnosis and resolution, and reducing downtime.
Atlassian today also introduced Jira Ops, an end-to-end incident management platform. OpsGenie is already integrated into Jira Ops and will be available from day one.
That means Atlassian is able to offer customers a simpler approach to dealing with service disruptions – a one-stop shop to manage incident response.
The acquisition of OpsGenie also underscores Atlassian’s strategic focus on the IT market.
“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.”
“At OpsGenie, we saw an opportunity to help companies whose response to critical IT issues was slowed by inefficient, outdated processes and technology,” said Berkay Mollamustafaoglu, OpsGenie’s co-founder and CEO.
“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.”
Details regarding the transaction
The acquisition is valued at approximately $295 million, comprising approximately $259M in cash and the remainder in Atlassian restricted shares, subject to continued vesting provisions.
The transaction is expected to close in October, subject to certain closing conditions.
For fiscal 2019, the acquisition is expected to add approximately one percentage point of revenue to the target revenue range of approximately $1,146 to $1,154 million previously provided on Atlassian’s fourth quarter fiscal 2018 earnings announcement on July 26, 2018.
Additionally, for fiscal 2019, the acquisition is expected to be dilutive to IFRS operating margin and earnings per share, and neutral to non-IFRS operating margin and earnings per share.
These estimates reflect a reduction relating to fair value adjustments to acquired deferred revenue.