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.
The San Francisco-based company said it now has more than 70,000 paying organizations
As the company first reported revenue and user growth that missed expectations
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