v3.26.1
Business Combinations
 12 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combinations
7. Business Combinations
The Browser Company of New York Inc.
On October 20, 2025, the Company acquired 100% of the outstanding equity of The Browser Company of New York Inc. (“BCNY”), the company behind the Dia and Arc browsers. The total purchase price was $488.3 million, composed of $481.5 million in cash and $6.8 million in non-cash settlement of existing BCNY shares included in the Company’s strategic investments. The acquisition of BCNY further expands offerings to Atlassian customers by providing a browser for enterprises designed for knowledge workers using SaaS applications in the AI-era.
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Fair Value
Cash and cash equivalents$22,160 
Prepaid expenses and other current assets1,235 
Intangible assets, net91,000 
Goodwill376,885 
Accrued expenses and other current liabilities(2,102)
Deferred tax liabilities(832)
Net assets acquired$488,346 
The excess of purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill. The resulting goodwill is primarily attributed to the assembled workforce and expanded market opportunities, including providing the BCNY browsers to customers as an additional product along with existing Company offerings. The goodwill is not deductible in the U.S. for income tax purposes. The fair values assigned to assets acquired and liabilities assumed are preliminary and based on management’s estimates and assumptions which may be subject to change as additional information is received. The primary areas that remain preliminary relate to the fair values of certain intangible assets acquired, certain tangible assets and liabilities acquired, contingencies as of the acquisition date, income tax, including deferred taxes, and residual goodwill. The Company expects to finalize the valuation no later than one year from the acquisition date.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for useful life):
Fair ValueUseful Life (years)
Developed Technology$80,000 3
Trade Name11,000 3
Developed technology represents the estimated fair value of BCNY’s AI-enabled browser technology. Trade name represents the estimated fair value of the BCNY trade name.
In connection with the transaction, the Company granted $8.2 million worth of replacement awards in the form of restricted stock units (“RSU”) to BCNY employees and $97.0 million worth of RSU awards to certain key BCNY employees. The fair value of the RSU awards was based on the stock price of the Company on the grant date. The RSU awards are subject to future vesting provisions based on service conditions, and the related expense is accounted for as stock-based compensation and classified in the consolidated statement of operations according to the activities that the employees perform.
A Software Company
On November 10, 2025, the Company acquired 100% of the outstanding equity of A Software Company (“DX”), which specializes in engineering intelligence. The acquisition of DX further expands the offerings to Atlassian customers and enhances the Company’s Collections. The total purchase price was composed of $720.4 million in cash.
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Fair Value
Cash and cash equivalents$27,910 
Accounts Receivable6,529 
Other non-current assets9,929 
Intangible assets, net182,800 
Goodwill557,439 
Accrued expenses and other current liabilities(1,706)
Deferred revenue, current(25,482)
Deferred tax liabilities(26,865)
Other non-current liabilities(10,192)
Net assets acquired$720,362 
The excess of purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill. The resulting goodwill is primarily attributed to the assembled workforce and expanded market opportunities, including integrating the DX engineering intelligence platform with existing Company offerings. The goodwill is not deductible in the U.S. for income tax purposes. The fair values assigned to assets acquired and liabilities assumed are preliminary and based on management’s estimates and assumptions which may be subject to change as additional information is received. The primary areas that remain preliminary relate to the fair values of certain intangible assets acquired, certain tangible assets and liabilities acquired, contingencies as of the acquisition date, income tax, including deferred taxes, and residual goodwill. The Company expects to finalize the valuation no later than one year from the acquisition date.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for useful life):
Fair ValueUseful Life (years)
Developed Technology$138,000 5
Trade Name37,000 5
Customer Relationships4,800 5
Backlog3,000 3
Developed technology represents the estimated fair value of DX’s engineering intelligence technology. Trade name represents the estimated fair value of the DX trade name.
In connection with the transaction, the Company granted $201.8 million in restricted stock awards (“RSAs”) and provided $38.9 million in deferred cash compensation to certain key DX employees. The fair value of the RSAs was based on the Company’s stock price on the grant date. Both the RSAs and cash compensation are subject to future vesting provisions based on service conditions. The related expense for the RSAs and cash compensation is accounted for as employee compensation expense, specifically stock-based compensation related to the RSAs, and is classified in the consolidated statement of operations according to the activities that the employees perform.
Other Fiscal Year 2026 Business Combinations
During the fiscal year 2026, the Company also completed two additional acquisitions to expand its offerings. These transactions were accounted for as business combinations and were not material individually or in the aggregate to the consolidated financial statements.
Total transaction costs incurred related to the business combinations were not material for fiscal year 2026.
The Company has included the financial results of BCNY, DX, and the other two additional business combinations described above in its consolidated financial statements from the date of acquisition, which were not material for fiscal year 2026. Pro forma results of operations have not been presented for fiscal year 2026 because the effect of the acquisitions individually and in the aggregate would not be material to the Company’s consolidated financial statements.