Atlassian Acquires Mindville: ITSM, Asset Management vs ServiceNow
Atlassian ($TEAM) has acquired Mindville, essentially uniting an IT service management (ITSM) software company with an asset management application company to counter ServiceNow ($NOW). Financial terms were not disclosed.
This is M&A deal 310 that ChannelE2E has covered so far in 2020.
Atlassian positions itself as a software development and collaboration tools company. But Atlassian’s Jira platform also competes against ServiceNow and other service desk platform providers the ITSM software market.
Ahead of the deal, Mindville had 160 partners that support customers in over 100 countries, according to Mindville CEO and Co-founder Tommy Nordahl. The partner ecosystem spanned consulting firms, resellers and integrators.
Atlassian, meanhile, has a partner ecosystem that spans solution provides, global alliances, marketplace and platform partners.
Atlassian Acquires Mindville: Potential Customer Benefits
For its part, Mindville develops Insight — an enterprise asset management platform. Mindville Insight integrates with Atlassian Jira, allowing partners and customers to closely track IT assets and business assets.
Asset management is an especially important capabilities amid the coronavirus economy — during which companies and partners need to closely track IT and business assets within corporate offices and across remote and work-from-home settings.
Moreover, Mindville has potential synergies with Atlassian’s Halp acquisition of May 2020. Halp develops a Slack-based help desk ticketing system.
During a July 30 earnings call with Wall Street analysts, Atlassian CEO Mike Cannon-Brookes further described how the Mindville and Halp acquisitions fit together. Both acquisitions, Cannon-Brookes said, align with Atlassian’s:
“long-term philosophy that there’s a line between IT and software development, that’s increasingly becoming blurred. As the team is building software, the teams operating, deploying, and managing that software are becoming ever more shared or collaborating a lot more. And you can see that in both acquisitions.”
How Atlassian, Mindville and Halp Fit Together
Together, Atlassian with Mindville and Halp allow the software company to become “the only company I suppose that has a broad platform for all sorts of technical team workflows,” Cannon-Brookes asserts. He continued:
“You can also look at Mindville specifically, as just a part of a sort of steady long-term progress of delivering more value for customers in the IT market. You know, obviously, with Jira Service Desk and Opsgenie and now Mindville and Halp there. It is, as we’ve mentioned before, the fastest growing part of our business that is operating at large scale and this will go, you know, we think only continue that trend.
With Mindville were taking it beyond a service desk into a broader service management offering and is a very prudent decision, we know the Mindville team well and I think we will work extremely well together.”
Atlassian, ServiceNow Quarterly Financial Results
Meanwhile, Atlassian remains in growth mode. Revenue was $430.5 million in Q4 of fiscal year 2020, up 28.7 percent from Q4 of fiscal year 2019, according to Atlassian financial results released on July 30, 2020.
ServiceNow also remains in growth mode. Revenue was $1.071 billion in Q2 of fiscal 2020, up 28 percent from Q2 of fiscal 2019, ServiceNow announced on July 29, 2020. ServiceNow also announced two new CXOs on earnings day.