US cloud software development tools provider GitLab, which counts Google parent Alphabet among its investors, is exploring a sale amid interest from potential buyers, writes Reuters with reference to their own informed sources.
Image source: Alex Kotliarskyi / Unsplash
The report said GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale. Cloud monitoring company Datadog is named as one of the possible buyers. It is noted that it is too early to talk about a deal with anyone, since negotiations on a possible sale of GitLab are still ongoing. Officials at GitLab and Datadog have declined to comment on the matter. Alphabet, which owns 22.2% of GitLab’s voting shares through its venture capital arm, also did not comment on a possible sale of the cloud platform.
Deals in the tech sector are picking up steam as advances in artificial intelligence and cloud computing push companies to expand their services. Alphabet is in talks to acquire cybersecurity startup Wiz, which is valued at about $23 billion. Alphabet has also previously considered buying marketing software company HubSpot.
According to Dealogic, the technology sector accounted for the largest share of mergers and acquisitions in the first half of 2024, accounting for more than 42% of the year-on-year total, worth $327.2 billion. As for GitLab, the company has more than 30 million registered users. GitLab has been traded on the New York Stock Exchange since its initial public offering in 2021. The company’s stock has fallen 16% this year amid investor concerns that GitLab’s customers will cut back on software spending.
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