US provider of cloud-based software development tools GitLab whose investors include Google parent Alphabet is exploring a sale, after acquisition interest sources familiar with the development quoted. The sources further added that Gitlab which has a market value of about $8billion is working with investment bankers on a sale process that has attracted interest from peers including cloud monitoring firm Datadog.
The deal is still weeks away and no agreement is confirmed, the sources said, requesting anonymity. There was no immediate response for comment from Datadog and GitLab. Google which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. In IT Industry, due to the advancements in Artifical Intelligence and Cloud Computing deal making is picking up at a rapid pace as companies push to expand their offerings. Sources reported, Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot.
According to data from Dealogic the technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally. According to GitLab’s website, Gitlab’s platform provides a single tool that allows development, operations and security teams to design and manage software on a single tool.
It is headquartered in San Francisco and all the employees of the company work remotely. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub.
Sid Sijbrandij, the Founder and CEO of Gitlab issued a statement he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He further added that he is working on making a full recovery and would continue with his duties.
