Atlassian sells team-chat tools to Slack

It has made an equity investment and will also partner with the company for marketing and sales

Software maker Atlassian 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.

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 per cent 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 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 per cent to $243.8 million.