Snowflake announced Monday it intends to acquire Crunchy Data, a PostgreSQL-focused database startup, as part of a continued wave of acquisitions in the data management industry. While financial details were not publicly disclosed, sources close to the transaction estimated Crunchy Data’s value at around $250 million. Snowflake has not commented on the valuation estimate.
The acquisition marks yet another move by major technology companies seeking to strengthen their data solutions in support of advanced AI technologies. Recently, Salesforce acquired Informatica to upgrade its data infrastructure, while Alation added Numbers Station to enhance structured data management capabilities for its AI agent platforms. Similarly, ServiceNow recently completed an acquisition of Data.World to integrate AI agent functionality.
Crunchy Data provides solutions built around PostgreSQL, a widely-used open source relational database management system popular among developers due to its strong compatibility with SQL. Crunchy Data counts major firms such as UPS, SAS, and Moneytree among its customers, as well as notable public sector entities like the U.S. Department of Homeland Security.
By integrating Crunchy Data into its ecosystem, Snowflake aims to offer customers and industry partners—including Blue Yonder and LandingAI—a new product dubbed Snowflake Postgres, designed as an enterprise-grade PostgreSQL solution that integrates smoothly into its cloud data platform. A private preview of this new offering is expected soon.
Snowflake’s senior vice president of engineering, Vivek Raghunathan, highlighted the strategic significance of the acquisition in a press statement, describing it as a step towards achieving Snowflake’s vision of providing the industry’s most trusted AI and data platform. “With this proposed acquisition, we are addressing a $350 billion market opportunity and responding to the real demand from our customers for PostgreSQL in the Snowflake AI Data Cloud,” Raghunathan said.
The deal builds upon Snowflake’s recent initiatives to improve data integration capabilities. Last year, the firm introduced new connectors enabling easier integration with PostgreSQL and MySQL databases and acquired data management specialist Datavolo in another effort to strengthen its underlying technology.
