Snowflake to acquire Crunchy Data for enhanced Postgres in AI Data Cloud

Published 02/06/2025, 21:14
Snowflake to acquire Crunchy Data for enhanced Postgres in AI Data Cloud

SAN FRANCISCO - Snowflake Inc. (NYSE: SNOW), a leader in cloud-based data warehousing and analytics with a market capitalization of $70 billion and impressive 51% return over the past year, announced its intention to acquire Crunchy Data, a prominent provider of open source PostgreSQL technology. According to InvestingPro data, the company’s stock is currently trading near its 52-week high, reflecting strong market confidence in its strategic initiatives. This strategic move, disclosed at Snowflake’s annual user conference, aims to integrate Crunchy Data’s enterprise-grade PostgreSQL into Snowflake’s AI Data Cloud, offering an AI-ready database solution with a focus on security and compliance.

The acquisition is designed to address the growing need for secure and robust database management systems in enterprise applications. With revenue growth of 27.5% and gross profit margins exceeding 66%, Snowflake’s initiative will leverage Crunchy Data’s track record of delivering PostgreSQL solutions in highly regulated environments, including federal and financial institutions. For detailed insights into Snowflake’s financial health and growth prospects, InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive analysis.

PostgreSQL is currently the database of choice for nearly half of developers worldwide. Snowflake’s adoption of the technology promises to simplify the development, deployment, and scaling of AI applications. By incorporating Crunchy Data’s capabilities, Snowflake intends to provide a seamless experience for developers, along with the necessary tools to create high-performance applications quickly.

Blue Yonder and LandingAI, two of Snowflake’s partners, have expressed optimism about the acquisition. They anticipate that the integration of PostgreSQL technology within Snowflake’s platform will expedite development processes and provide a competitive edge in the AI sector.

Vivek Raghunathan, SVP of Engineering at Snowflake, emphasized the company’s commitment to being a comprehensive data and AI platform. Paul Laurence, Co-Founder of Crunchy Data, echoed this sentiment, expressing excitement about joining forces with Snowflake to enhance the security and confidence of customers running regulated workloads.

The completion of the acquisition is subject to regulatory approvals and customary closing conditions. Snowflake’s extended support to the Postgres community and Crunchy Data’s customer base has been assured post-acquisition.

Snowflake Postgres is set to be available in private preview soon, marking a continuation of Snowflake’s strategy to unify transactional and analytical data, a journey that began with its Unistore database.

This article is based on a press release statement from Snowflake Inc.

In other recent news, Snowflake Inc. reported strong financial performance in the first quarter of 2026, surpassing expectations with a 26% year-over-year increase in product revenue. Citi analysts responded by raising the price target for Snowflake shares to $245, citing the company’s robust bookings and resilient consumption trends. Meanwhile, Macquarie also increased its price target to $190, acknowledging Snowflake’s significant growth in remaining performance obligations, though maintaining a Neutral rating. On the other hand, Argus reiterated a Hold rating, observing that Snowflake’s investments in artificial intelligence and machine learning are yet to yield immediate financial returns.

Additionally, Snowflake has entered a three-year partnership with the LA28 Olympic and Paralympic Games and Team USA, aiming to enhance athlete performance and fan engagement through its AI Data Cloud. Canva has also partnered with Snowflake, leveraging its data capabilities to boost B2B growth and refine product offerings. This collaboration has resulted in enhanced sales operations, personalized user experiences, and improved marketing strategies. These developments highlight Snowflake’s ongoing efforts to expand its capabilities and partnerships, positioning the company for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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