GitLab, a leading provider of cloud-based software development tools, is exploring a sale, according to sources familiar with the matter. The company, which has a market value of $8 billion, has attracted acquisition interest from several companies, including cloud monitoring firm Datadog. Any deal is still weeks away and no agreement is certain.
The potential sale comes amidst a surge in dealmaking in the technology sector, fueled by advancements in artificial intelligence and cloud computing. Google parent Alphabet, which holds a 22.2% voting stake in GitLab, is also actively pursuing acquisitions, including a potential $23 billion deal for cybersecurity startup Wiz.
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GitLab’s platform enables development, operations, and security teams to manage software using a single tool. Despite strong revenue growth, GitLab’s stock performance has been underperforming this year, raising concerns about customer spending cuts. The company faces competition from Microsoft, which acquired rival GitHub in 2018.
The potential sale of GitLab highlights the consolidation trend in the tech sector as companies seek to expand their offerings and compete effectively in the rapidly evolving market.