(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 have taken early looks at the Israeli-American company, according to the people. The considerations may not lead to a transaction, the people said, asking not to be identified discussing confidential information.
A spokesperson for JFrog said the company “is not in discussions with any private equity or financial adviser regarding M&A at this time” and “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 chief executive officer. So-called DevOps players like JFrog help large enterprises to handle more efficiently the development and deployment of software to the end-user.
As part of its second-quarter earnings, JFrog lowered guidance for fiscal 2024, sending the shares down almost 28%. It said it now expects revenue of $422 million to $424 million, citing a challenging macro environment that is likely to weigh on deal closures.
(Updates with closing share price in fourth paragraph.)
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