JFrog Shares Rise Amid Reports of Takeover Interest

Software development tools company JFrog has generated interest from private equity firms, according to a report from Bloomberg on Friday, citing sources familiar with the situation.

JFrog’s shares increased by over 5% on Thursday and saw a rise of more than 4% in premarket trading on Friday.

Sources indicate that several private equity firms, including Permira and Hellman & Friedman, have expressed initial interest in potentially acquiring JFrog. However, discussions are reportedly still in the early stages and may not lead to a formal agreement; the information shared remains confidential.

In response to the speculation regarding a possible takeover, a spokesperson for JFrog stated that the company is not currently engaged in negotiations with any private equity firms or financial advisors regarding mergers and acquisitions, emphasizing that JFrog typically refrains from commenting on rumors.

Representatives from Permira and Hellman & Friedman opted not to provide comments on the matter.

Despite a 14% decline in JFrog’s shares this year, the news of potential acquisition interest sparked an uptick in the stock’s value. Currently, the company holds a market capitalization of approximately $3.28 billion.

Founded in 2008, JFrog specializes in the DevOps sector, offering tools that help enterprises manage the development and deployment of software more effectively.

Earlier this year, JFrog revised its financial projections for fiscal 2024, reducing revenue expectations to a range of $422 million to $424 million, citing challenges in the broader economic environment that could hinder the closure of deals.

This adjustment in guidance resulted in a 28% decline in JFrog’s stock price following the release of its second-quarter earnings report.