Software Firm Atlassian valued at $3.5 billion After T.Rowe Price Deal.
Australian-founded software company Atlassian has been reportedly valued up to $3.3 billion after some shareholders had sold a piece of their share worth a total of $150 million.
According to The Wall Street journal, over 800 employees and ex-employees with shareholdings, together with a US-based venture capital fund Accel Partner, currently the only outside backer for Atlassian, have voluntarily sold a portion of their shares to the investment firm T.Rowe Price.
The report points out that the idea for this sell-down is to liquidate shares that has been held by some employees who have been with the company for more than 10 years. Although, the report never mentioned Cannon-Brookers nor his fellow co-cheif executive Scott FarquHar, who cashed in some of their share back in 2010, will be selling any of their shares during this funding round.
Cannon-Brookes said that company is generating enough cash and will no longer hurry to raise money in the public markets. In fact, Atlassian’s compound annual growth rate for the last five financial years during 2008 till 2012 have been steadily over 40 percent, and cash flow has continued to stay positive for the last decade.
“We don’t have the pressure other companies have to get through a public offering,” he said.
Speculations where abound that Atlassian was going to complete an initial public offering (IPO) with the NASDAQ stock exchange near the end of 2013, but no such movement has come out to play since then. Cannon-Brookes said the company is currently waiting for the perfect opportunity.
“We’re not putting it off or anything. We’ve said all along it’s a natural step we’ll take at some stage in the future,” he said.
“We are, as a company, in control of our own destiny, which is a great position to be in, and we want to make sure we as individuals, as the founders and CEO, and also the whole company are ready, both culturally and number wise.”
At the meantime, Cannon-Brookes said it would continue business as usual where they will continue to ”keep plugging away and try to build really good things and solve problems for people, and let the rest take care of itself”.
Offering its shares to employees has been a strategy from the beginning for Atlassian. It’s an incentive to encourage employees who are unsure of whether they should join up with the startup. It’s a promise to have a share within the company’s future gains, much similar to that of a cash bonuses that large corporate firms that tend to offer their employees.