GitLab Eyes Potential Sale Amid Acquisition Interest
GitLab, a leading U.S. cloud-based software development tool provider, is exploring a potential sale due to acquisition interest, including from cloud monitoring firm Datadog. The company's market value is around $8 billion, and it is collaborating with investment bankers on the sale process. Dealmaking in the technology sector is rising, influenced by advancements in AI and cloud computing.
GitLab, a U.S. provider of cloud-based software development tools, is exploring a sale after attracting acquisition interest, according to sources familiar with the matter. With a market value of about $8 billion, GitLab is working with investment bankers on a sale process, drawing interest from peers, including cloud monitoring firm Datadog.
Any potential deal is still weeks away, and no agreement is certain, given the confidential nature of the matter. GitLab's shares rose up to 11.5% before leveling to a 7% gain in midday trading. Neither GitLab nor Datadog responded to requests for comment, nor did Alphabet, which holds a 22.2% voting stake in GitLab through its venture capital arm.
Dealmaking in the technology sector is on the rise due to advancements in artificial intelligence and cloud computing. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for approximately $23 billion. The technology sector accounted for the largest share of mergers and acquisitions in the first half of 2024, increasing over 42% year-on-year to $327.2 billion globally, according to Dealogic.
(With inputs from agencies.)
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