.July 18, 2024 07:47:00 AM

GitLab Inc (NASDAQ:GTLB) saw a 9% surge in shares after reports of potential sale following acquisition interest. Valued at $8 billion, the cloud-based software provider is working with investment bankers on the process. Peers like Datadog have shown interest, but a deal is not imminent. Alphabet holds a 22.2% voting stake in GitLab. Needham & Company analysts view GitLab as an attractive acquisition target, with a potential tie-up with Datadog seen as beneficial. A Datadog acquisition could face fewer regulatory hurdles, with recent amendments ensuring management’s equity awards are secure. The market has already factored in a potential acquisition premium, with a 16% share price increase in the past three weeks.