The trend of data company acquisitions continued on Monday with Snowflake’s announcement of its intent to acquire Crunchy Data, a partner specializing in Postgres databases. A source familiar with the transaction estimated the deal’s value at around $250 million, although Snowflake did not disclose specific terms or confirm the valuation.
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This acquisition follows a series of tech giants purchasing data startups to enhance their database capabilities for AI applications. Recently, Salesforce acquired Informatica to improve its data management tools, while Alation and ServiceNow also made acquisitions aimed at bolstering AI functionalities.
Crunchy Data provides essential tools for building with Postgres, an open-source database system favored by developers. The company has a diverse client base, including UPS, SAS, and the U.S. Department of Homeland Security.
By acquiring Crunchy Data, Snowflake aims to develop Snowflake Postgres, an enterprise-grade PostgreSQL database for its customers and partners, enhancing its offerings in the AI space. This technology is expected to enter private preview soon.
“Our vision is to deliver the world’s most trusted and comprehensive data and AI platform,” said Vivek Raghunathan, SVP of engineering at Snowflake. “Today’s announcement represents another step toward making Snowflake the ultimate destination for enterprise data and AI solutions.”
In 2024, Snowflake introduced new connectors for PostgreSQL and MySQL, further expanding its database capabilities.
SOURCE: TECH CRUNCH
