The wave of data company acquisitions persisted on Monday as Snowflake moved to acquire Crunchy Data.
Late Monday, cloud data platform Snowflake revealed its plan to acquire Crunchy Data, a partner specializing in Postgres databases. A source familiar with the transaction estimated its value at approximately $250 million.
Deal Terms Undisclosed as Snowflake Remains Silent on Valuation
The deal’s terms were not publicly disclosed, and Snowflake chose not to comment on the valuation.
This acquisition is part of a recent trend where major tech companies are buying data startups to strengthen their database capabilities that support AI agents. Just last week, Salesforce acquired the long-established Informatica to enhance its data management tools for AI. A few weeks earlier, Alation purchased Numbers Station to enable its customers to utilize AI agents on structured data. Additionally, ServiceNow acquired Data.World earlier this month with AI agents in focus.
Crunchy Data provides businesses with tools to develop using Postgres, an open-source, object-relational database management system favored by developers and compatible with SQL. Founded 13 years ago, the company serves clients like UPS, SAS, and Moneytree, as well as public sector organizations including the U.S. Department of Homeland Security.
Acquisition Fuels Launch of Snowflake Postgres and Enhances AI-Focused Database Solutions
The acquisition will provide Snowflake with the core technology to introduce Snowflake Postgres, an enterprise-level PostgreSQL database for its customers and partners such as Blue Yonder and LandingAI. Additionally, this deal strengthens Snowflake’s database solutions amid the growing AI agent landscape.
The technology is expected to be available in a private preview shortly.
“Our goal is to provide customers with the world’s most trusted and comprehensive data and AI platform,” said Vivek Raghunathan, Snowflake’s SVP of engineering, in a statement shared with TechCrunch. “Today’s announcement about our planned acquisition of Crunchy Data highlights why Snowflake is the premier destination for all enterprise data and AI needs. We are addressing a huge $350 billion market opportunity and meeting the growing demand from customers to integrate Postgres into the Snowflake AI Data Cloud.”
In 2024, Snowflake introduced new connectors for PostgreSQL and MySQL to its customers and is now expanding that capability. Last year, Snowflake also acquired the data management firm Datavolo.
Read the original article on: Techcrunch
Read more:OpenAI May Soon let you Log into Apps with ChatGPT