Snowflake to Acquire Crunchy Data for $250 Million

Washington, D.C. — Snowflake, a leading data analytics software maker, announced Monday its agreement to acquire Crunchy Data, a startup known for its cloud-based PostgreSQL database solutions. The acquisition is valued at approximately $250 million, according to a source familiar with the negotiations.

Crunchy Data provides enhanced security and performance features over standard open-source PostgreSQL, which has surged in popularity, overtaking MySQL as the most sought-after database on Stack Overflow in 2023. The startup, founded in 2012 and based in Charleston, South Carolina, reported over $30 million in annual revenue and works with notable clients like Kyndryl, Thales, and the U.S. Department of Homeland Security.

This move comes as both Snowflake and rival Databricks are strategically acquiring companies to enhance their offerings related to artificial intelligence. Databricks recently announced its intent to buy Neon, another PostgreSQL-based service.

With the acquisition of Crunchy Data, Snowflake aims to introduce a new PostgreSQL database service, simplifying data migration processes for clients. Christian Kleinerman, executive vice president of product at Snowflake, stated that this service will enable clients to efficiently run queries on larger datasets.

Snowflake’s shares have risen approximately 36% year-to-date, as analysts have highlighted its strong financial performance. Sridhar Ramaswamy, the CEO of Snowflake, emphasized the importance of building a robust foundation for clients in the era of AI. During a recent earnings call, he mentioned, “We’re helping our customers build a strong foundation to lead in the era of agentic AI.”

The acquisition is poised to bolster Snowflake’s database offerings and taps into a significant market opportunity, as highlighted by Vivek Raghunathan, SVP of engineering at Snowflake. He indicated that this move aligns with Snowflake’s vision to create an all-encompassing data and AI platform.