Great point. Reaching out to them is an opportunity to understand their use-case and motivations. Perhaps they are interested in some sort of merger/partnership?
A partnership like agreeing on prices for the same kind of service? I skipped my last mandatory compliance training, but something tells me that this might not be a good idea.
A partnership where you send each other customers that are a better fit for the other's product, is the standard level-1 truce here. If a customer calls you ticked off that you don't have some feature, and you know the competitor has it and you're not going to build it, fire the customer at your competition!
There are plenty of ways that companies in the same space can cooperate and compete at the same time without doing anything shady. Most of our partners at autotempest are also technically competitors. But in almost any business there's nothing at all unusual about having a friendly chat with a competitor in the same space. You probably understand each other pretty well! You won't completely open up to them of course, but there might be some info each side is willing to share for mutual benefit.