Dec. 24 at 6:58 PM
Snowflake is reportedly in talks to acquire application-monitoring startup Observe Inc. for about
$1 billion, which would be its largest acquisition to date, according to The Information. The deal would expand Snowflake’s presence in observability tools, strengthening competition with Datadog and Cisco’s Splunk. Observe already relies on Snowflake’s database technology, has received investment from Snowflake’s venture arm, and shares close board-level ties.
Founded in 2018, Observe has raised over
$470 million and was last valued at
$848 million. Baird analyst William Power said the rumored price should be manageable given Snowflake’s strong cash position and free cash flow. The move would follow Snowflake’s 2024 acquisition of AI observability startup TruEra AI.
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