Snowflake, a cloud data platform, has disclosed its intention to acquire Crunchy Data, a Postgres database partner.

According to an individual who is well-versed in the subject, the transaction is estimated to be worth approximately $250 million.

The circumstances were not disclosed. Snowflake declined to provide an assessment of the transaction’s valuation.

It is the most recent in a series of acquisitions by technology titans to enhance their fundamental database offerings, which are the foundation of AI agents.

Salesforce acquired Informatica, a company that has been in operation for decades, in order to enhance its data management infrastructure for AI agents.

Crunchy Data provides businesses with the necessary resources to construct Postgres, an object-relational database management system that is both open source and object-oriented.

This system is well-received by developers and is compatible with the SQL database language.

In addition to public sector organizations such as the U.S. Department of Homeland Security, the 13-year-old company collaborates with customers including UPS, SAS, and Moneytree.

The acquisition will provide Snowflake with the necessary technology to introduce Snowflake Postgres, an enterprise-grade PostgreSQL database, to its consumers and partners, including Blue Yonder and LandingAI.

The database offerings of Snowflake are also further enhanced by this agreement in the era of AI agents.

In a press release that was provided to the media, Vivek Raghunathan, SVP of engineering at Snowflake, stated, “Our goal is to provide our customers with the most comprehensive and trusted data and AI platform in the world.”

“Today’s announcement of our proposed acquisition of Crunchy Data is yet another reason why Snowflake is the premier destination for all enterprise data and AI requirements.”

We are addressing a substantial $350 billion market opportunity and a genuine requirement for our customers to integrate Postgres with the Snowflake AI Data Cloud.

New connectors were introduced by Snowflake in 2024 for its consumers to connect to MySQL and PostgreSQL.

Presently, it is expanding that selection. Additionally, Snowflake acquired Datavolo, a data management company, last year.