Enterprise software maker, Atlassian (ASX:TEAM), saw a small decrease in stocks by 1.1% hitting $197.30 in the premarket.

The downturn comes after the announcement that Atlassian has agreed to purchase Loom, a video messaging platform, in a deal valued around $975 million.

The terms of acquisition include approximately $880 million in cash and the remainder to be paid in stock, according to the company.

The purchase agreement is expected to conclude by the third quarter of fiscal year 2024.

Prior to the announcement, Atlassian’s stocks had risen by approximately 55% for the year.

Atlassian is a prominent maker of enterprise software.