GitLab reportedly considering selling itself, with rival Datadog and Google parent Alphabet among potential buyers

Online Git repository provider GitLab is in talks with investment banks to sell the company, and competitor Datadog has expressed interest in acquiring it, Reuters reported.

Exclusive: Google-backed software developer GitLab explores sale, sources say | Reuters
https://www.reuters.com/markets/deals/google-backed-software-developer-gitlab-explores-sale-sources-say-2024-07-17/

GitLab Stock: Software Maker Seen Exploring Sale. Datadog Among Suitors? | Investor's Business Daily
https://www.investors.com/news/technology/gitlab-stock-gtlb-software-datadog-sale-report/

Google-Backed Software Maker GitLab Eyes Sale, Reuters Says - Bloomberg
https://www.bloomberg.com/news/articles/2024-07-17/google-backed-software-developer-gitlab-eyes-sale-reuters-says

According to Reuters, GitLab's market capitalization is about $8 billion and it is in talks with investment banks to sell the company. Sources told Reuters that a deal is still weeks away and that the deal itself is not certain.

GitLab provides a cloud-based software development platform called 'DevOps'. According to analyst Jason Ader, there is a trend toward service integration amid intensifying competition in the DevOps industry, and Datadog, which provides a cloud-based security system, has shown interest in acquiring the company. Datadog is expanding its business scope and is also focusing on providing DevOps, just like GitLab.

Adar also named Alphabet, the parent company of Google, as a possible candidate to acquire GitLab. GitLab has received significant investment from Alphabet, which owns 22.2% of the voting rights of GitLab. Other possible acquisition candidates include Microsoft, which owns GitHub, IBM, and Atlassian.

Reuters points out that one of the reasons GitLab is considering selling itself is the health of CEO Sid Sibrandi. Sibrandi, who owns 45.51% of GitLab's shares, revealed in the company's second quarter (April to June) 2024 financial results announcement that he plans to undergo treatment for osteosarcoma. CEO Sibrandi commented that he is 'working to make a full recovery and will continue to work,' but Adar said, 'We believe that the uncertainty surrounding CEO Sibrandi's health could be a factor in the board being open to a possible sale.'

Reuters requested comment from GitLab, Datadog and Alphabet, but did not receive a response.