NEW YORK (Reuters) – GitLab, a U.S. provider of cloud-based software development tools, is exploring a sale after attracting acquisition interest. GitLab explores sale following the involvement of investors, including Google parent Alphabet. People familiar with the matter revealed this information.
GitLab, valued at approximately $8 billion, is collaborating with investment bankers on a sale process. Peers like cloud monitoring firm Datadog have shown interest, according to sources.
Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. #GitLabExploresSale
GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment.
Dealmaking in technology is accelerating due to advancements in AI and cloud computing, prompting companies to broaden their portfolios. Reuters reported Alphabet’s advanced talks to acquire cybersecurity firm Wiz for about $23 billion, after prior interest in HubSpot. #GitLabExploresSale
In the first half of 2024, the technology sector dominated mergers and acquisitions, surging over 42% to $327.2 billion globally according to Dealogic. This growth underscores robust activity driven by advances in digital transformation and innovation.
GitLab integrates development, operations, and security functions into one platform, serving over 30 million users globally. Deployed by over half of the Fortune 100, it operates with a remote-first approach despite its nominal San Francisco headquarters.
This trend is prompting companies like GitLab to expand their offerings. In line with this, GitLab explores sale to enhance its platform’s capabilities.
