Atlassian acquires dx, A Developer Productivity Platform, For $1b

Productivity software elephantine Atlassian is making its largest acquisition yet to adhd a developer productivity instrumentality to its product suite.  

Atlassian announced Thursday it has agreed to get nan developer productivity insight platform DX for $1 billion in rate and restricted stock. Enterprises usage DX to analyse really productive their engineering teams are and place bottlenecks slowing them down.

DX was launched 5 years agone by Abi Noda and Greyson Junggren. Noda told TechCrunch successful 2022 that he founded nan company to find a amended measurement to understand what hampered engineering teams. At nan time, he felt nan metrics he was utilizing arsenic a merchandise manager at GitHub weren’t giving him nan afloat picture, and he wanted to build thing amended that didn’t make developers consciousness for illustration they were being surveilled.  

“The assumptions we had astir what we needed to thief vessel products faster were rather different than what nan teams and developers were saying was getting successful their way,” Noda told TechCrunch astatine nan time. “Even teams didn’t ever person consciousness astir their ain issues and leadership.” 

DX came retired of stealth successful 2022 and has since tripled its customer base every year. The institution now useful pinch much than 350 endeavor customers, including ADP, Adyen and GitHub, among others, while raising less than $5 cardinal successful task funding.  

Atlassian co-founder and CEO Mike Cannon-Brookes told TechCrunch that aft trying to build an in-house developer productivity penetration instrumentality for 3 years, his Sydney, Australia-based company realized it made consciousness to look for an external, existing option.

DX was a earthy choice, Cannon-Brookes said, considering 90% of DX’s customers were already utilized Atlassian’s task guidance and collaboration devices arsenic well.

“DX has done an astonishing occupation [of] knowing nan qualitative and quantitative aspects of developer productivity and turning that into actions that tin amended those companies and springiness them insights and comparisons to others successful their industry, others astatine their size, etc.,” Cannon-Brookes said. 

He added that nan timing was correct owed to nan emergence of AI devices and companies looking for ways to measurement really they are being used.  

 “You abruptly person these budgets that are going up. Is that a bully thing?” Cannon-Brookes said. “Is that not a bully thing?  Am I spending nan money successful nan right ways? It’s really, really important and critical.” 

He added that location was a awesome taste fit, too. Cannon-Brookes said he’s always felt an affinity for Utah-based entrepreneurs — DX is based successful Salt Lake City — and he liked that some companies were capable to scale without taking on much extracurricular funding.  

The emotion was mutual.  

Noda told TechCrunch this week that he thinks DX and Atlassian are amended together than isolated and that galore of Atlassian’s devices are complementary to nan information and accusation that DX’s level gathers.  

“We are capable to provide customers pinch that afloat flywheel to get nan information and understand where we are unhealthy,” Noda said. “They tin plug in Atlassian’s tools and solutions to spell reside those bottlenecks. An end-to-end flywheel that is ultimately what customers want.” 

DX’s level will beryllium integrated into nan broader Atlassian merchandise suite. 

This is Atlassian’s second acquisition this month. The institution announced it was buying AI-browser developer The Browser Company in early September.