HashiCorp's shares soared in extended trading on Friday after it was reported that the software developer was considering a sale.
Citing unnamed sources, Bloomberg reported that HashiCorp has been working with a financial adviser in recent months and engaging in exploratory talks with other industry players to gauge interest from potential buyers.
HashiCorp Potential Sale Leads to Over 12% Increase in Shares
HashiCorp shares had fallen around 11% in New York over the past 12 months. But on Friday, its stocks rose by over 12% in extended trading. CNBC reported that as of Friday's close, HashiCorp was trading at $26.50.
Sources told Bloomberg that deliberations are still ongoing, which means any transaction is still uncertain. HashiCorp has a market value of around $5.3 billion.
About HashiCorp
HashiCorp is a San Francisco-based software firm that assists other companies in various industries in setting up their digital infrastructure in the cloud and data centers.
According to Bloomberg-compiled data, the value of software deals has soared 30% this year to around $74 billion, as mergers and acquisitions activity picks up worldwide.
"We are behind where we wanted the company to be at this point in our growth cycle, and we have work to do," HashiCorp CEO David McJannet said on last week's conference call with analysts.
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