Datadog Bid Nearly $4B for Cybersecurity Startup Upwind, Which Hasn't Accepted
DDOG has more than doubled off its 52-week low of $98.01 on light trading volume (0.4× avg).
Summary
Datadog recently offered close to $4 billion to acquire Upwind Security, a cloud cybersecurity startup, according to The Information. Upwind has not accepted the offer and is instead finalizing a $300 million funding round at a roughly $3.8 billion valuation, which puts the private raise at essentially the same price as Datadog's bid. For a company of Datadog's size, a deal near $4 billion would be a substantial cash or stock outlay and would mark a real push into cloud security, an area where it has been building out its product line. The fact that Upwind is leaning toward private capital rather than a sale means the approach may not convert into a transaction.
At the time of this announcement, DDOG was trading at $258.58 on NASDAQ in the Technology sector, with a market capitalization of approximately $92.8B. The 52-week trading range was $98.01 to $300.68. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.