(Bloomberg) — JFrog Ltd., a technology company that makes tools for software developers, has attracted preliminary takeover interest from potential suitors, people with knowledge of the matter said.
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Several private equity firms, including Permira and Hellman & Friedman, took an early look at the Israeli-American company, according to the people. The considerations should not lead to a transaction, said the people, who asked not to be identified discussing confidential information.
A JFrog spokesperson said the company is “not currently in discussions with private equity or financial advisors regarding mergers and acquisitions” and that “it is not JFrog’s practice to comment on industry rumors and speculation.” Representatives for Permira and Hellman & Friedman declined to comment.
Shares of JFrog, which had fallen 14% this year, rose as much as 7.4% on Friday. They closed up 4.5% to $31.05 in New York trading, giving the company a market value of $3.4 billion.
JFrog was co-founded in 2008 by Shlomi Ben Haim, who remains its CEO. So-called DevOps players such as JFrog help large companies to handle the development and implementation of software at the end user more efficiently.
As part of its second-quarter earnings, JFrog cut guidance for fiscal 2024, sending shares down nearly 28%. It said it now expects revenue of $422 million to $424 million, citing a challenging macro environment that will likely weigh on deal-making.
(Updates with closing share price in fourth paragraph.)
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