Google-Backed Software Maker GitLab Eyes Sale, Reuters Says

(Bloomberg) — GitLab Inc., a US software developer backed by Google parent Alphabet Inc., is exploring a sale after attracting interest from potential bidders, Reuters reported.

The San Francisco-headquartered company, which has a market value of about $8 billion, is working with investment bankers on the sale and has drawn interest from peers including Datadog, a cloud monitoring firm, Reuters reported, citing people familiar with the matter who it didn't identify. Neither GitLab or Datadog responded to Reuters' requests for comment.

Deals in the tech industry have surged by about 47% this year, according to data compiled by Bloomberg, as companies work to expand their business models in the face of potential disruption by artificial intelligence. Alphabet is in talks to buy Israeli cybersecurity company Wiz for about $23 billion, people familiar with the matter said earlier this week.

GitLab's shares jumped as much as 16% in premarket trading on Wednesday before New York exchanges opened, after closing at $50.66 previously. The stock had declined 20% so far this year.

The company builds a set of tools that helps companies manage their software development cycle. It has more than 30 million registered users, including more than half of Fortune 100 companies, according to the company's website.

Related:GitHub vs. GitLab: Which One Is Better for Your Enterprise?