The trend of data company acquisitions persisted on Monday with Snowflake’s acquisition of Crunchy Data.

Snowflake, a cloud data platform, announced its intention to acquire Crunchy Data, a partner specializing in Postgres databases, late in the afternoon. According to a source familiar with the matter, the deal is estimated to be valued at approximately $250 million.

The financial terms of the deal were not disclosed, and Snowflake declined to comment on the valuation of the acquisition.

This acquisition is the latest in a series of transactions where tech giants are purchasing data startups to enhance their database offerings, which power AI agents. Recently, Salesforce acquired Informatica, a decades-old company, to strengthen its data management capabilities for AI agents. A few weeks ago, Alation acquired Numbers Station to provide its customers with access to AI agents that can run on structured data. Earlier this month, ServiceNow acquired Data.World with AI agents in mind.

Crunchy Data provides companies with the necessary tools to build using Postgres, an open-source and object-relational database management system that is widely used by developers and compatible with the SQL database language. The 13-year-old company has worked with clients such as UPS, SAS, and Moneytree, in addition to public sector organizations like the U.S. Department of Homeland Security.

The acquisition will enable Snowflake to launch Snowflake Postgres, an enterprise-grade PostgreSQL database for its customers and partners, including Blue Yonder and LandingAI. This deal further enhances Snowflake’s database offerings in the era of AI agents.

This technology is expected to be available in private preview soon.

“Our goal is to provide the world’s most trusted and comprehensive data and AI platform to our customers,” said Vivek Raghunathan, SVP of engineering at Snowflake, in a press release provided to TechCrunch. “Today’s announcement of our proposed acquisition of Crunchy Data represents another reason why Snowflake is the ultimate destination for all enterprise data and AI needs. We are addressing a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud.”

In 2024, Snowflake introduced new connectors for Snowflake customers to PostgreSQL and MySQL. Now, the company is expanding this offering. Snowflake also acquired data management company Datavolo last year.