GitHub competitor GitLab is considering a sale. Datadog is named as the main candidate, although Google cannot be ruled out.

GitLab is exploring the path of a possible sale with investment banks. Reuters writes this on the authority of well-informed sources. Interested buyers will need to raise at least $8 billion to acquire GitLab, which is the company’s current market value.

Although GitLab can present good financial figures and reported positive cash flow for the first time in the last quarter, it is itself open to a takeover. GitLab is battling increasing competition from GitHub, which is supported by Microsoft. With the help of a strong investor, GitLab wants to prepare itself for the fight.

Datadog or Google?

There are no concrete offers yet, but there is likely to be no lack of interest. Analysts say Datadog is the leading candidate. The company specializes in cloud monitoring software and by taking over GitLab it is not only strengthening its portfolio, but also potentially gaining thirty million additional customers that it could acquire from GitLab.

Another logical buyer candidate would be Google Cloud. The parent company Alphabet is already GitLab’s largest investor with a 22 percent stake. Google is busy completing the takeover of the security company Wiz, for which it will have to pay up to 23 billion dollars. AWS is also mentioned as a possible buyer.

Large, multi-billion dollar acquisitions are not uncommon in the IT industry. Hashicorp is close to agreeing to a deal with IBM, although the marriage could still face objections from regulators.