Nothing Less Than $3 Billion: Aussie Atlassian Preps IPO
Goldman Sachs Group and Morgan Stanley will lead the charge for the Sydney based Atlassian, which is valued at more than US$3 billion privately.
The company, which has a large presence in Silicon Valley, recently hired a new finance chief, Erik Bardman, a former CFO at video-streaming device maker Roku.
Atlassian’s biggest money spinner is Jira, a system for creating and tracking service-desk tickets across an organisation. Other Atlassian products include Confluence, a tool for team collaboration and document-sharing; Stash, an application for sharing code; and HipChat, a chat program acquired in 2012.
Its main rivals include Rally Software Development, which went public in 2013 and is valued at about $500 million, and GitHub, a start-up that raised funding valuing it at $2 billion.
Heading up the Atlassian team are co-chief executives Scott Farquhar and Mike Cannon-Brookes, both originally Sydney-siders.
Atlassian sales have risen an average of 40 percent annually, with expected revenue in the current financial year of more than A$200 million.
The IPO will add to the upbeat mood in the Australian start-up sector that has followed the elevation of former Communications Minister Malcolm Turnbull to the prime ministership and Christopher Pyne to the technology and innovation portfolio.
After a survey of 28,000 workers, Atlassian was last year named by business magazine BRW as Australia’s best workplace and is rapidly expanding with offices in Sydney, San Francisco, Austin, Texas and Amsterdam.
The IPO is significant not only for the Oz tech industry but for investors in general, as only just over three of the 120 tech companies valued at more than $1 billion have opted to go down the same path this year, with concerns growing about the increasing regulatory and public scrutiny that follows an IPO.