U.S. Markets closed

Atlassian acquires planning-software startup for $166 million after record close

Jeremy C. Owens

Atlassian Corp. has agreed to acquire a six-year-old startup that helps businesses plan collaboratively among teams for $166 million, the company announced Monday afternoon after establishing another record-high closing price. AgileCraft will cost the company $154 million in a cash payment, with the rest paid out in shares with vesting provisions. The purchase could show Atlassian's refocused direction - the software company previously sold its businesses that attempted to compete with Slack technologies Inc. and Microsoft Corp. in workplace chat to Slack, along with investing in the business-messaging startup. Atlassian said that the deal would add $1 million to $2 million to revenue in fiscal 2019 revenue, which should be three-quarters complete by the time the acquisition closes in April, but is expected to be dilutive to margins both this year and in fiscal 2020. Atlassian shares closed at an all-time high Monday and have gained 87.7% in the past year, as the S&P 500 index has increased 2.6%, pushing the software company's market capitalization higher than $25 billion. The stock dipped about 0.4% in late trading Monday immediately after the acquisition was announced.