Snowflake to shop for database startup Crunchy Data for approximately $250 million

Data analytics instrument maker Snowflake mentioned Monday it has agreed to shop for Crunchy Data, a startup that provides cloud-based database instrument. Snowflake pays about $250 million, in step with an individual conversant in the topic who used to be now not licensed to talk publicly concerning the deal.

Crunchy Data sells get admission to to a cloud-hosted model of the PostgreSQL open-source database, which changed MySQL as the preferred database in Stack Overflow’s annual developer survey in 2023. Crunchy Data’s carrier contains safety and function improvements compared to the usual open-source code.

Snowflake rival Databricks ultimate month introduced its intent to obtain Neon, whose instrument may be in line with PostgreSQL, for round $1 billion. Snowflake additionally checked out purchasing Neon ultimate 12 months however walked away, in step with a special one that added that Crunchy Data generates over $30 million in annualized income.

Neon didn’t right away reply to a request for remark.

Both Databricks and Snowflake are reckoning on their respective offers to assist them take pleasure in company spending to ship synthetic intelligence brokers that perform duties on their very own.

With Crunchy Data, Snowflake will quickly supply early get admission to to a PostgreSQL database carrier, in step with a remark. The plan is to simplify the method of transferring information into Snowflake with the brand new carrier so shoppers can extra simply run queries on a bigger provide of knowledge, in step with Christian Kleinerman, govt vp of product at Snowflake.

Shares of Snowflake are up round 36% up to now this 12 months. In May, Stifel analysts likened the corporate to top-tier golfer Scottie Scheffler, announcing Snowflake had delivered a “Scheffler Like Quarter & Guide,” surpassing consensus with 25% year-over-year income enlargement. Stifel has a purchase score on Snowflake inventory.

“We’re helping our customers build a strong foundation to lead in the era of agentic AI,” CEO Sridhar Ramaswamy informed analysts on a convention name in May. “We’re continuing on this momentum, and you’ll see even more from us in just a few weeks.”

Crunchy Data used to be based in 2012 and is founded in Charleston, South Carolina, with round 100 workers. Investors come with Alsop Louie Partners, Gray Ventures, Harbert Growth Partners and Heavybit. Clients come with Kyndryl, Thales, UPS and the U.S. Department of Homeland Security. The

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