bucket 300x249 Atlassian acquires BitBucketAtlassian, the Australian-based provider of Collaboration and Software Development Tools to some of the world’s largest organisations, has announced that it has acquired BitBucket, the maker of the Mercurial Distributed Version Control System (DVCS) and its 60,000+ users.

Terms of the deal were not disclosed.

This is the first acquisition for Atlassian following their massive Accel Partners led $60Million funding round, which we covered in July. One of the reasons given for that round was to fund global growth through acquisition. This deal would suggest that Atlassian has started on that path.

Atlassian has an excellent FAQ page about the acquisition, which gives the following reason for doing the deal:

Atlassian makes collaboration and developer software, and focuses on providing tools that help technical teams build great products. Bitbucket shares Atlassian’s passion for code collaboration, and has built a very successful hosted code collaboration service, atop Mercurial’s distributed version controls system (DVCS). We think Bitbucket is a perfect complement to our existing portfolio of Atlassian developer tools – from issue tracking with JIRA to code reviews with Crucible – and an important on-ramp for individual developers or small teams to add tools to support their development processes as their teams and code bases grow.”

The key part of the deal for Mercurial users (both current and prospective) is that they can now get unlimited private/public repositories and unlimited disk space for up to 5 users for  free…forever. From a development side Atlassian has tripled the BitBucket team, which is great news for future releases

Prior to the announcement, Atlassian also upgraded Bitbucket’s hosting infrastructure to provide greater up-time and reliability.

All in all it sounds like a great deal for both companies and their users.