Atlassian acquires Trello for about $360 million in cash. The remainder will be paid out in stock. The Australian software maker thus takes control of the tech world’s leading team development app. The acquisition is expected to close by March 31 of this year.
According to Atlassian president Jay Simons, just like its other acquisitions, the company will keep both the Trello service and the brand itself alive without conducting any immediate changes.
Trello was launched in the TechCrunch Disrupt Battlefield in 2011 and in 2014. It is now one of the fastest growing project management services with daily active users passing 1 million. Overall, the number of registered users is 19 million while Trello has under 100 employees only, all of which will now work at Atlassian.
Atlassian offers its own suite of productivity tools such as the communication tool called Hipchat, the collaborative document creator Confluence. Hipchat competes with Slack but also a range of other tools offered internally by Microsoft, Google, and even Facebook. Atlassian also has a growing suite of CRM tools that offer features quite identical to those of Microsoft and Salesforce.
According to Simons, Trello and Atlassian shared the same mission. They two wanted to reach 100 million monthly active users in offices globally. Now, this goal seems easier to accomplish. Atlassian is really proud of the purchase since it’s obvious that Trello is an incredible breakout product.
There are both pros and cons of startups being acquired by larger companies. For example, this means larger investments will be made into the development of the product. This is, in most cases, in favor of the business. Also, if the acquiring company has got a bigger reputation, it can benefit the startup hugely. However, in certain cases, there might be disadvantages as well. For example, larger companies are more complex and they have got their own habits that are really hard to change. Your startup might just have to follow the general rules. Here comes what I call expectation mismatch. It is when you cannot predict what is going to happen next. Some startupers though are quite OK with this.
Turn to a business lawyer
Whatever the case, it is important to turn to a business lawyer for legal help when it comes to selling or acquiring a startup. This way, you will gain more control over and peace of mind for your product.