Snowflake Expands Portfolio with Acquisition of Crunchy Data Database Startup

The ongoing trend of data company acquisitions continued on Monday with Snowflake’s announcement to acquire Crunchy Data.

Snowflake, a leading cloud data platform, revealed its intention to purchase Crunchy Data, known for its partnership with Postgres databases. According to a source familiar with the deal, this acquisition is estimated to be valued at approximately $250 million.

While the specifics of the deal remain undisclosed, Snowflake has chosen not to comment on its valuation.

This acquisition represents a continuation of a wave of tech giants purchasing data startups to enhance their database capabilities, particularly for AI applications. Last week, Salesforce bought Informatica to strengthen its data management tools for AI. A few weeks prior, Alation acquired Numbers Station to provide AI agents capable of interacting with structured data. Earlier this month, ServiceNow added Data.World to its portfolio with a focus on AI agents.

Crunchy Data equips businesses with tools for developing with Postgres, an open-source object-relational database management system favored by developers for its compatibility with SQL. Founded 13 years ago, Crunchy Data serves a diverse clientele, including UPS, SAS, and Moneytree, as well as public sector organizations like the U.S. Department of Homeland Security.

This acquisition positions Snowflake to launch Snowflake Postgres, an enterprise-grade PostgreSQL database tailored for its customers and partners such as Blue Yonder and LandingAI. Additionally, it enhances Snowflake’s database offerings in the AI landscape.

Users can expect this technology to be available in private preview in the near future.

“Our vision is to deliver the world’s most trusted and comprehensive data and AI platform to our customers,” stated Vivek Raghunathan, SVP of engineering at Snowflake. “The announcement of our proposed acquisition of Crunchy Data signifies why Snowflake is the premier destination for all enterprise data and AI requirements. We are addressing a significant $350 billion market opportunity and a critical need for our clients to integrate Postgres into the Snowflake AI Data Cloud.”

In 2024, Snowflake introduced new connectors allowing customers to connect with PostgreSQL and MySQL, and this acquisition further enhances that offering. Last year, Snowflake also acquired data management firm Datavolo.