Australian software company Atlassian has signed a definitive agreement to buy video messaging platform Loom in a deal valued at $975m (A$1.54bn).

The deal consideration comprises a cash component of $880m and $95m worth of Atlassian stock.

Set up in 2015, Loom allows customers to record their desktop screen, camera, and microphone simultaneously.

According to Loom’s website, it has raised $203m in funding from investors such as a16z, Coatue, ICONIQ Growth, Kleiner Perkins, Sequoia and Slack Fund.

Atlassian, which offers productivity and collaboration solutions for teams, plans to integrate Loom’s asynchronous (async) video capabilities into its platforms.

The integration of Loom is expected to enable teams and departments to collaborate and communicate more effectively.

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Additionally, with Atlassian and Loom’s capabilities in artificial intelligence users will be able to switch between video, video transcripts, summaries, documents, and the workflows created from them with ease, Atlassian said.

For Loom’s more than 200,000 customers, the deal will give them access to Atlassian’s portfolio of products and solutions such as Jira and Confluence.

Atlassian co-founder and co-CEO Mike Cannon-Brookes said: “Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways.”

Loom co-founder and CEO Joe Thomas said: “Loom’s vision is to empower everyone at work to communicate more effectively wherever they are, and by joining Atlassian, we can accelerate their mission to unleash the potential of every team. We are excited to weave video into collaboration in a way that only Loom + Atlassian can.”

Subject to regulatory approval and customary closing conditions, the acquisition is expected to be completed in the third quarter of Atlassian’s financial year 2024.