8 Company Analysts Say $53 Billion Will Buy Atlassian

  • Despite the market slowdown, collaboration-software company Atlassian’s revenue continues to grow.
  • It now has the opportunity to tap into new markets and industries through strategic acquisitions.
  • From AI chatbots to DevOps tools, these are the companies analysts say Atlassian could target.

Despite the market downturn, Atlassian’s revenue continues to grow.

The $53 billion Australian development-and-collaboration-software company saw 60% growth in its cloud-and-data-center revenue in its third quarter. Analysts expect it to continue acquiring and investing in new products, according to its latest letter to shareholders.

Part of its financial success stems from its acquisition-led growth strategy. Since Atlassian was founded in 2002, the company has acquired 19 companies. That includes Trello, a project management company, for $425 million in 2017 and, most recently, Percept.ai, a virtual-assistant startup, for an undisclosed amount in January. But Wall Street and tech analysts told Insider that current economic conditions are leading venture capitalists to slow their investments, creating more room for companies like Atlassian to scoop up startups.

“A lot of investment arms have suddenly become more cautious about trying to protect against any kind of recession,” William McKeon-White, a software analyst at Forrester, told Insider.

To survive the downturn, analysts expect companies to change their business models to remain competitive and profitable. For Atlassian, that means tapping into new markets and industries by adding new functionality to its product suite, according to Thomas Murphy, the senior director of research at Gartner.

To understand which companies might be on Atlassian’s shopping list this year, Insider asked analysts which companies they think are ripe for acquisitions. Analysts declined to name specific companies due to speculation concerns. But they identified gaps in Atlassian’s product suite that the company could fill with acquisitions such as automation, artificial intelligence, IT-service management, and chat tools.

All values ​​are according to PitchBook, unless otherwise noted.

Here are the eight companies Atlassian said analysts may look to next, listed from smallest to largest valuations:

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