Atlassian sells team-chat tools to Slack

(Reuters) – Software maker Atlassian Corp Plc said on Thursday it will exit its chat-platform business by selling Stride and Hipchat Cloud to privately owned Slack Technologies for an undisclosed amount.

FILE PHOTO: The Slack messaging application is seen on a phone screen August 3, 2017. REUTERS/Thomas White/File Photo

Atlassian has made an equity investment in San Francisco-based Slack and will also partner with the company for marketing and sales.

Shares of Atlassian rose about 16.7 percent to $78 in after-hours trading.

Slack, a startup providing communication tools for corporate users, will be discontinuing the acquired team-chat tools as it looks to compete against much larger rival Microsoft Corp that has launched a free version of Teams, its own workplace collaboration software, earlier this month.

Atlassian on Wednesday also reported a bigger net loss of $25.9 million, or 11 cents per share, in the fourth quarter ended June 30, from a loss of $20.7 million, or 9 cents, a year earlier.

Revenue rose 40 percent to $243.8 million.

Reporting by Shariq Khan in Bengaluru; Editing by Shounak Dasgupta

About Reuters

Reuters is the news and media division of Thomson Reuters. Thomson Reuters is one of the world's largest international multimedia news agency, business news, technology news, headline news. Established in 1851.
View all posts by Reuters →