Atlassian has announced its acquisition of The Browser Co., an AI-focused web browser startup, for $610 million in cash, with the deal expected to close in Atlassian’s fiscal second quarter, ending in December. The Browser Co., founded in 2019, has developed innovative browser products designed to enhance productivity, competing with major industry players like Google Chrome and Apple’s Safari.
The company launched its Arc browser in 2022, featuring customizable tools such as a built-in whiteboard and the ability to share groups of tabs. More recently, it introduced the Dia browser in beta this June, which enables users to interact with an AI assistant across multiple tabs. Atlassian CEO and co-founder Mike Cannon-Brookes highlighted the limitations of conventional browsers for professional users, stating that mainstream browsers are primarily designed for casual browsing rather than work productivity. He noted that Arc’s tab management and automatic archiving features have helped him stay organized and efficient.
Despite Arc’s innovations, adoption of its unique features remained limited. Co-founder and CEO Josh Miller described the platform as more akin to a specialized professional tool than a mass-market product. This led to a pause in the development of new features, raising speculation about whether the browser would eventually be released as open-source.
The Browser Co. attracted acquisition interest from other AI companies, including OpenAI and Perplexity, which reportedly offered $34.5 billion for Google Chrome while exploring The Browser Co. as a strategic acquisition. Cannon-Brookes emphasized that Atlassian’s focus is on integrating acquired products effectively rather than engaging in high-profile bidding wars.
The startup was valued at $550 million last year, with investors including Atlassian Ventures, Salesforce Ventures, and co-founders of Figma and LinkedIn, reflecting strong confidence in its potential. The acquisition aligns with Atlassian’s broader goal of enhancing the experience of users across its suite of productivity software, including Jira. However, the company intends to go beyond improving integration with Atlassian products, focusing on combining Arc’s SaaS capabilities and power-user features with Dia’s AI functionality, speed, and streamlined design, alongside Atlassian’s enterprise expertise.
The merger is expected to strengthen Atlassian’s position in the AI-enhanced productivity space, offering users a more intelligent, efficient, and customizable browsing experience. By leveraging The Browser Co.’s technology, Atlassian aims to create a browser that supports complex workflows while integrating advanced AI features, positioning the company to better serve enterprise clients and power users seeking more than conventional browsing solutions.
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