Google-backed software developer GitLab explores sale

GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year.