Cloud giant Snowflake has agreed to acquire data pipeline management company Datavolo for an undisclosed sum.
Snowflake announced the deal during the market's closing bell on Wednesday, at the same time it also announced its third-quarter 2025 earnings. The acquisition has not yet been completed and is subject to customary closing conditions, Snowflake said in a release.
Joseph Witt and Luke Roquet, who met while working together at Hortonworks, founded Datavolo in 2023. Witt previously served as CVP at Cloudera, while Roquet was CMO at Cloudera and, before that, head of business development at AWS.
Datavolo uses Apache NiFi, an open source project for data processing developed by the NSA, to power its platform to automate data flows between various enterprise data sources. Data “processors” extract, clean, transform, and enrich data, including generative AI use cases.
Datavolo, which was able to raise $21 million in venture capital from investors including Citi Ventures and General Catalyst prior to the acquisition, said Snowflake CEO Sridhar Ramaswamy is building a more versatile data processing pipeline for Snowflake customers. I'm planning on building one. For example, Datavolo could allow users to replace single-use data connectors with flexible pipelines to move data from cloud or on-premises sources to Snowflake's data cloud, he said.
“Introducing Datavolo to Snowflake expands the scope of the data lifecycle that Snowflake captures, delivering both simplicity and cost savings for our customers without sacrificing data scalability,” said Ramaswamy. said in a statement. “We are excited to have the Datavolo team join Snowflake to accelerate the platform of choice for unstructured and structured, batch and streaming enterprise data, and to be dedicated to the success of the open source community. .”
Witt said that once the acquisition closes, Snowflake will support and help manage the Apache NiFi project. “Data engineering at scale can be incredibly costly and complex. Our goal has always been to simplify the customer experience and help them achieve value faster. '' he added in a press release. “By partnering with Snowflake, we will empower our customers with the massive scale and radical simplicity of the Snowflake platform, ultimately making data engineering available to more users.”
Thanks in part to AI, the demand for data management technology is skyrocketing. Fortune Business Insights estimates that the global enterprise data management market could reach a value of $224.87 billion by 2032.
However, data management has been a challenge for businesses long before the AI boom. According to a 2022 study from data quality platform Great Expectations, 91% of organizations said data quality issues are impacting performance.
Against this backdrop, it's no surprise that companies like Datavolo have emerged.
Today was a big news day for Snowflake, which reported better-than-expected earnings and sent its stock up 19%. In addition to the Snowflake acquisition, the company announced a multi-year partnership with Anthropic to integrate the AI startup's models into its Snowflake Cortex AI, Snowflake Intelligence, and Cortex Analyst products.