(Reuters) – Software maker Atlassian Corp Plc said on Thursday it will exit its chat-platform business by selling Stride and Hipchat Cloud to privately owned Slack Technologies for an undisclosed amount.

FILE PHOTO: The Slack messaging application is seen on a phone screen August 3, 2017. REUTERS/Thomas White/File Photo

Atlassian has made an equity investment in San Francisco-based Slack and will also partner with the company for marketing and sales.

Shares of Atlassian rose about 16.7 percent to $78 in after-hours trading.

Slack, a startup providing communication tools for corporate users, will be discontinuing the acquired team-chat tools as it looks to compete against much larger rival Microsoft Corp that has launched a free version of Teams, its own workplace collaboration software, earlier this month.

Atlassian on Wednesday also reported a bigger net loss of $25.9 million, or 11 cents per share, in the fourth quarter ended June 30, from a loss of $20.7 million, or 9 cents, a year earlier.

Revenue rose 40 percent to $243.8 million.

Reporting by Shariq Khan in Bengaluru; Editing by Shounak Dasgupta