Atlassian could hit Nasdaq as early as next week, opening up the possibility of an acquisition frenzy as the Aussie turned British-based software firm reels in the cash - then starts spending it.
The JIRA and Bitbucket vendor should raise as much as $370m, giving it a paper value of $3.6bn. The amended obligatory SEC filing covers all the key info: $7m income on $320m revenues, off 51,000 plus customers, and 10 years of profitability. And, as observers have noted, it has no net liabilities, and is already sitting on a $200m plus pile of cash.
The firm said that post IPO it will “continue to refine our unique business model” and “protect and promote our culture”. That model includes the effective absence of any kind of traditional enterprise sales team. At the same time, it will increase product value “by providing [customers] with a broader, integrated set of products” and grow the Atlassian market place and partner ecosystem.
Continuing with the model would certainly be a feat and a half. We’ve seen lots of companies in this space start talking about the need for enterprise sales people as they’re forced (by investors) to start piling on the growth.
Rather, the proceeds will go towards “general corporate purposes”, and, more interestingly, “We may also use a portion of the net proceeds to acquire complementary businesses, products or technologies.” Though it says, “we do not have agreements or commitments for any specific acquisitions at this time.”
Later in its filing, Atlassian points out it has already completed a number of buys, “and expect(s) to consider additional strategic transactions, including acquisitions of, or investments in, businesses, technologies, services, products, and other assets in the future.”
“In addition, since September 2006, we have acquired more than ten early-stage companies with complementary technologies and have successfully integrated them into our platform. We believe both organic development and inorganic acquisition are core competencies for us, and intend to use both to continue to drive ever-increasing product value for our customers.”
Class A shareholders get one vote per share, while class B shareholders – effectively founders and co-CEOs Mike Cannon-Brooks and Scott Farquhar - get 10 votes per share ... meaning the founders will retain an enormous amount of power over the company’s direction.
Firms in this space have been hoovering up other outfits at quite a pace recently, as they bulk out their platforms. But while deals are definitely taking place, it can be hard to make sense of what sums we’re talking about, as often both companies remain privately held, and often rather small.
However, Atlassian is clearly a serious firm already and its filing shows it is already sitting on cash of $208m, which should be enough to slurp up a few promising, if hungry, startups. So it’s hard not to conclude that Atlassian is warming up the fat to fry rather bigger fish. Isn't it?
We have no idea what Atlassian should spend its money on. But we reckon you do. If you’re any of Atlassian products and have an opinion on what it should spend its cash, on let us know in comments below. You never know who might be listening. ®