Atlassian To Acquire Startup Behind Dia, Arc Browsers In $610 Million Deal: Report

Atlassian Corp. (TEAM) on Thursday reportedly agreed to acquire The Browser Company in an all-cash deal valued at $610 million.

According to a CNBC report, the deal is expected to close in Atlassian’s fiscal second quarter (Q2), which is the October to December period.

Atlassian co-founder and CEO Mike Cannon-Brookes said in an interview with CNBC that most popular web browsers out there have shortcomings for people who work primarily on computers.

Atlassian’s shares fell 0.37% in Thursday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory.

The Browser Company is a startup that is behind the Arc and Dia browsers for Apple Inc.’s Mac and Microsoft Corp.’s Windows operating systems. Founded in 2019, this New York-based startup recently launched the Dia browser with several artificial intelligence-powered features built in, including what the company calls “skills.”

While traditional browsers have a search box, the Dia browser instead allows users to chat with an AI assistant about multiple browser tabs at the same time.

“Whatever it is that you’re actually doing in your browser is not particularly well served by a browser that was built in the name to browse. It’s not built to work, it’s not built to act, it’s not built to do,” Cannon-Brookes said in the CNBC interview, adding that the Arc browser’s ability to manage tabs and automatically archive old ones made him feel like he can manage his work.

TEAM stock is down 30% year-to-date, but up 4% over the past 12 months.

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