Key Takeaways
- GitLab, a developer platform company backed by Alphabet’s Google, is reportedly considering a sale. Its shares rose Wednesday following reports of a possible deal.
- Datadog, a cloud-scale monitoring company, is among those interested in buying GitLab, Reuters reported.
- Alphabet is a GitLab investor, holding a 22% voting stake in the company.
GitLab (GTLB) shares surged Wednesday after reports that the developer platform, backed by Alphabet’s (GOOGL) Google, is exploring the opportunity for an acquisition.
Its shares were up about 10% in early trading. The stock remains in the read for the year so far.
GitLab is reportedly considering a sale, with interest from companies like Datadog (DDOG), a cloud-scale monitoring provider, according to Reuters reporting that cited anonymous sources close to the matter. Datadog shares were down more than 6% early Wednesday.
Alphabet, through Google Ventures, is an investor in GitLab and holds a 22% voting stake in the company as of June 2024. The news comes shortly after reports that Alphabet abandoned efforts to buy HubSpot, which would have been its largest acquisition to date.
GitLab, which has a market capitalization of above $8 billion, has more than 30 million registered users and provides development, security, and operations solutions to over half of Fortune 100 companies.
GitLab and Datadog did not immediately respond to Investopedia’s request for comment.