A new capital injection has lifted the value of Australian software company Atlassian to $US3.3 billion.
The Wall Street Journal reports T. Rowe Price and Dragoneer Investment Capital will buy up to $150 million from existing shareholders.
The $3.3 billion valuation is a huge leap from its $400m price in 2010, which was the last time the company took a direct funding injection.
Atlassian co-founder Mike Cannon-Brookes told the WSJ that the company was attracted to T. Rowe Price and Dragoneer Investment Capital “because their expertise in the public markets may eventually be needed when it comes time to do an IPO”.
To date, Atlassian has avoided the lure of an IPO, as it already generates enough cash annually to service its reinvestments.
Those reinvestments are yet to include salespeople, as Atlassian prefers to develop Web-based business applications that it claims are good enough to sell by word-of-mouth.
Its user base has grown from 12,000 in 2010 to around 35,000 today.
The WSJ reports that Atlassian has been cash-flow positive each quarter for 12 years, with sales rising at an average of 40% annually for the last five years.
The company is expected to generate $200m over the next 12 months.
Cannon-Brookes and Atlassian’s other co-founder, Scott Farquhar, will not be cashing in any of their own shares in this funding round.
The pair debuted on the BRW Rich 200 in 2013 and have topped the BRW Young Rich for the past two years.
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