Thought Leadership
The technology industry is facing another potential major takeover: GitLab, the Google-backed provider of cloud-based software development tools, is currently considering a sale.
The company, which has a market value of around 8 billion dollars, has attracted the interest of potential buyers and is now working with investment bankers to manage the sales process, according to Reuters.
According to reports, the cloud monitoring company Datadog is among the interested parties. Datadog, which has a market value of 44 billion dollars, offers software that enables people to collaborate and measure their productivity via the cloud. Alphabet, Google’s parent company, which already holds 22.2% of the voting rights in GitLab, is also likely to keep a close eye on developments. However, the outcome of the process is still open and it is unclear whether a takeover will actually take place.
GitLab has made a name for itself in the technology industry. The company offers a platform that enables development, operations and security teams to design and manage software with a single tool. With over 30 million registered users worldwide and a presence at more than half of the Fortune 100 companies, GitLab has achieved a strong market position.
GitLab is in a solid financial position. In the last quarter, the company recorded robust sales growth of 33% to 169.2 million dollars and achieved a positive cash flow for the first time. Nevertheless, GitLab still faces challenges. However, GitLab is under price pressure, particularly from competition from Microsoft, which acquired rival GitHub for 7.5 billion dollars in 2018.
