SentinelOne, a US-listed cybersecurity services provider, is exploring options, including the sale, of its business, reported Reuters, citing sources.

With a valuation of $5bn, the company has become a target for acquisition as its shares have lost 80% of their value in the last two years.

As per the report, SentinelOne profited from a boom in technology spending during the Covid-19 pandemic, driven by remote work.

However, this boom was short-lived as businesses cut their information technology budgets when the economy slowed.

According to the sources, SentinelOne has hired investment bank Qatalyst Partners to provide advice on talks with potential buyers, including private equity groups.

The initial expressions of interest fell short of SentinelOne’s valuation expectations, and it is likely that the firm would cease negotiations without reaching an agreement, one of the sources said.

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The sources made no mention of the price that SentinelOne has been seeking.

Requests for comment from SentinelOne and Qatalyst Partners representatives were not immediately answered., reported the news agency.

Launched in Israel in 2013, SentinelOne leverages artificial intelligence to detect unusual behaviour in networks to protect laptops and smartphones from security threats.

The company was listed on the New York Stock Exchange in 2021 with a $8.9bn valuation and backing from venture capital companies, Tiger Global and Sequoia Capital and Daniel Loeb’s Third Point.

SentinelOne has had difficulty in turning  profitable since it maintained its rates low with customers to gain market share, reported the news agency.

It lowered the forecast for yearly revenue growth in its most recent quarterly financial report and announced it will lay off around 5% of its workforce.