GitLab, the US cloud software development tools company backed by tech giant Google, is looking for buyers after attracting interest in acquiring it, according to people familiar with the matter, Reuters reported.
According to Reuters, the company is currently working with investment advisers to explore sale options, and reports indicate that GitLab, which is valued at about $8 billion, is attracting interest from similar companies, including cloud monitoring company Datadog.
Although the potential deal is still in its early stages, the move comes at a time when the tech sector is seeing increased activity in the acquisition field, with Alphabet advancing in talks to acquire Waze for $23 billion.
Technology sectors recorded the largest share of mergers and acquisitions during the first half of 2024, with a growth rate exceeding 42% over last year to reach $327.2 billion globally, according to data from Dealogic.
GitLab allows users to manage and design software with a single tool, and the company has more than 30 million active users. Despite achieving strong revenue growth, GitLab faces challenges in pricing its products amid fierce competition from companies such as Microsoft.
While the company posted strong revenue growth of 33% year over year to $169.2 million and reported positive cash flow for the first time in its most recent quarter, it acknowledged the price hurdles of its offerings as it competes with Microsoft.
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