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£45bn software giant Atlassian quits UK in fresh blow to London’s tech ambitions

A $54bn (£45bn) software program firm is leaving London because it searches for a “broader set of traders”, in a recent setback to Britain’s try to courtroom tech.

Australian firm Atlassian moved its domicile to London in 2014 however is now uprooting itself once more and shifting to the US.

The Nasdaq-listed firm is transferring its incorporation to a brand new holding firm in Delaware, the Telegraph can reveal.

At a Excessive Courtroom listening to earlier this month to approve the plans, Martin Moore QC, for Atlassian, informed a choose: “The impact of the scheme can be to completely cultivate the corporate within the US”.

The transfer is yet one more blow to the Authorities’s ambition to ascertain the London Inventory Alternate as a major rival to New York for tech. Successive governments have tried to draw companies to London and itemizing guidelines have been reformed earlier this yr to make the capital a extra enticing place for tech.

Former Chancellor Rishi Sunak mentioned in a speech to London Tech Week final month: “If you happen to’re an entrepreneur in search of funding – I would like you to have a look at the UK and say: that is the place I need to be.”

Atlassian declined to remark however referred the Telegraph to an April assertion by Martin Lam, its head of investor relations.

Mr Lam mentioned: “We imagine shifting our father or mother entity to the US will enhance our entry to a broader set of traders, assist inclusion in extra inventory indices, enhance monetary reporting comparability with our trade friends, streamline our company construction, and supply extra flexibility in accessing capital.”

Atlassian’s departure bodes in poor health for Arm, the British microchip design enterprise. Ministers have leaned on its Japanese proprietor Softbank to listing the corporate in London amid fears that the commercial powerhouse might go away the UK. It was listed in London earlier than being purchased by Softbank in 2016.

Authorities officers beforehand blocked a £30bn merger between Arm and US rival Nvidia on nationwide safety grounds, a part of Britain’s efforts to maintain the Cambridge-based enterprise positioned within the UK.

Softbank founder Masayoshi Son has mentioned New York is at present the entrance runner within the race to host Arm’s float.

London’s popularity as a house for development firms was badly broken by the float of Deliveroo final yr. The meals supply enterprise misplaced 1 / 4 of its worth on the primary day of buying and selling alone. Greater than a 3rd of inventory market debuts in London throughout 2021 ended up buying and selling under their itemizing value, with Deliveroo among the many high ten overpriced floats.

Tech firms have lengthy encountered difficulties with London. In 2019 Nigel Toon, chief govt of Bristol processor startup Graphcore, mentioned there was a “deeper bench of analyst information in New York” and mentioned US itemizing guidelines have been extra favorable than these in London. His firm has but to drift regardless of a valuation of greater than £2bn and quite a few funding rounds.

Inventory market chiefs have reacted with alarm to 2021’s failings, unveiling plans in Might to ease the LSE’s guidelines for science and know-how companies searching for a premium itemizing. Corporations can be free of necessities to point out three years of income development along with audited monetary statements, underneath plans beforehand reported by the Telegraph.

Atlassian started in Australia as a enterprise making software program collaboration and improvement instruments. Its merchandise are primarily utilized by business software program improvement companies.

Eight years in the past Atlassian moved out of its native nation after deciding Australia was not probably the most favorable location to go public.

Co-founder Scott Farquhar informed the Australian Monetary Assessment on the time: “As we head in the direction of being a public firm, which at some stage is most certainly in our future … we thought it could be finest ready for a world investor base. “

An investor presentation from April urged Atlassian hopes to finish its transfer to the US by September or October.


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