Sydney, Australia based enterprise software company Atlassian has acquired OpsGenie for $295 million. OpsGenie is a service that sends engineers alerts when there are software and website outages.
“We view the IT market as a major opportunity for Atlassian,” said Atlassian co-founder and co-CEO Scott Farquhar in a statement. “We’re committed to supporting the needs of IT teams across companies of all sizes, and helping them quickly address service issues is critical. OpsGenie helps companies react to the flood of alerts they’re receiving in a much smarter way.”
According to Bloomberg, OpsGenie is going to integrate with Atlassian’s information technology service management product called Jira Ops. Jira Ops helps IT workers in tracking outages in order to minimize downtime.
IT outages and downtime is costing North American organizations about $700 billion per year says a report by IHS. This was determined through a report exploring the frequency, length, cost and causes of information and communication technology downtime experienced by a number of organizations. It could range from $1 million a year for mid-size companies to more than $60 million for larger enterprises.
“At OpsGenie, we saw an opportunity to help companies whose response to critical IT issues was slowed by inefficient, outdated processes and technology,” added OpsGenie co-founder and CEO Berkay Mollamustafaoglu. “We have dramatically grown our customer base to more than 3,000 around the world, and have built an outstanding team. We’re excited to join the Atlassian family and continue to help our customers cope with increasingly complex operational challenges.” OpsGenie’s 3,000 customers — which includes 7-Eleven and Expedia — will be absorbed into Atlassian going forward.
Atlassian also recently set up a strategic partnership with Slack, an enterprise collaboration company that it considers having a “spirited yet friendly competition.” Atlassian made an equity investment in Slack. And Slack acquired the IP for Atlassian’s Stride and Hipchat Cloud products, both of which the company discontinued.
OpsGenie raised $10 million in Series A venture capital funding prior to the acquisition. Battery Ventures led that round of funding.