Software companies have grappled with challenging economic conditions over the last 18 months. High inflation and rising interest rates pressured household budgets, and the knock-on effects forced businesses to manage their expenses carefully. That means hiring fewer employees and investing less money in software tools.

Workplace collaboration specialist Atlassian (NASDAQ: TEAM) has felt those effects, and its stock has declined by 58% from its best-ever levels set in 2021. However, the company is using this period to expand its product portfolio through in-house development and acquisition.

On Oct. 12, Atlassian announced plans to acquire video messaging platform Loom for $975 million as it looks to capitalize on remote work trends. The two companies are a great fit, and I'll explain why the deal is another reason to buy Atlassian stock while it's still beaten down.

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Source Fool.com