The American cloud-based software development tools provider GitLab, which has Alphabet (the parent company of Google) among its investors, is exploring the possibility of a sale in light of interest from potential buyers. This is reported by citing its informed sources.
The report states that GitLab, with a market value of around $8 billion, is working with investment bankers on the sale process. One potential buyer mentioned is Datadog, a cloud monitoring company. It is noted that it is still too early to talk about a deal with anyone since negotiations for GitLab's potential sale are still ongoing. Official representatives of GitLab and Datadog declined to comment on the matter. Alphabet, which owns 22.2% of GitLab's voting shares through its venture division, also does not comment on the potential sale of the cloud platform.
Deals in the technology sector are gaining momentum as advancements in artificial intelligence and cloud computing are pushing companies to expand their range of services. Alphabet the acquisition of the cybersecurity startup Wiz, which is valued at around $23 billion. Previously, Alphabet also considered acquiring HubSpot, which focuses on marketing software development.
According to Dealogic, in the first half of 2024, the largest share of mergers and acquisitions was in the technology sector — over 42% year-over-year, totaling $327.2 billion. As for GitLab, the company has over 30 million registered users. GitLab's shares have been traded on the New York Stock Exchange since their initial listing in 2021. This year, the company's stock value has decreased by 16% amid investor concerns that GitLab's clients will cut software spending.
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Source: 3dnews.ru
