Atlassian has entered into an agreement to acquire The Browser Company Inc., a startup focused on developing browsers with embedded artificial intelligence capabilities.
The two companies announced the deal today. The transaction values The Browser Company at $610 million, approximately $60 million higher than its valuation following a $50 million funding round last year. Atlassian expects the acquisition to close before December.
Founded in 2019, The Browser Company launched its first browser, Arc, three years later. Arc features a built-in ad blocker and multitasking tools that enable users to view two tabs side by side within the same window. Customization options allow users to modify web design without writing any code.
Arc also includes a suite of AI-powered features called Arc Max. When users hover their mouse over a tab in the browser toolbar, the AI displays a preview containing a description of the tab’s content. Another Arc Max function allows users to launch ChatGPT directly from the search bar.
In June, The Browser Company released its second browser, Dia, which offers an expanded set of AI features, including an integrated chatbot. Users can request the chatbot to generate documents, translate web pages, and perform various text-processing tasks.
Certain AI tools in Dia are tailored for online shopping. The browser can summarize customer reviews beneath product listings and check if the item is available at a lower price elsewhere.
In May, The Browser Company paused development of Arc to refocus efforts on Dia. Atlassian plans to integrate some of Arc’s features into Dia after the acquisition. It also intends to add new cybersecurity and compliance tools to make Dia more suitable for business users.
“Knowledge workers need a browser designed specifically for their unique needs, not one built for everyone in the world,” wrote Atlassian CEO Mike Cannon-Brookes in a blog post. “That’s exactly what we aim to build alongside The Browser Company.”
This acquisition could intensify competition for Perplexity AI Inc., which launched its own AI-powered browser called Comet in May. Comet offers document summarization and online research capabilities similar to Dia. Additionally, Comet can interact with web pages on behalf of users, speeding up tasks like online shopping.
Atlassian may also aim to compete with enterprise browser providers like Island Technology Inc., which raised $250 million in May. Island’s browser includes security features that block malicious websites, along with a password manager for storing employee login credentials for business applications. Atlassian could potentially integrate similar functionalities into Dia to enhance its appeal for enterprise users.
