U.S. Markets closed
  • S&P 500

    3,629.65
    -5.76 (-0.16%)
     
  • Dow 30

    29,872.47
    -173.77 (-0.58%)
     
  • Nasdaq

    12,094.40
    +57.62 (+0.48%)
     
  • Russell 2000

    1,845.02
    -8.51 (-0.46%)
     
  • Crude Oil

    44.94
    -0.77 (-1.68%)
     
  • Gold

    1,817.30
    +6.10 (+0.34%)
     
  • Silver

    23.35
    -0.01 (-0.03%)
     
  • EUR/USD

    1.1903
    -0.0016 (-0.1309%)
     
  • 10-Yr Bond

    0.8780
    -0.0040 (-0.45%)
     
  • Vix

    21.25
    -0.39 (-1.80%)
     
  • GBP/USD

    1.3351
    -0.0032 (-0.2363%)
     
  • USD/JPY

    104.2420
    -0.1980 (-0.1896%)
     
  • BTC-USD

    17,305.98
    -673.20 (-3.74%)
     
  • CMC Crypto 200

    338.31
    -32.20 (-8.69%)
     
  • FTSE 100

    6,357.22
    -33.87 (-0.53%)
     
  • Nikkei 225

    26,537.31
    +240.45 (+0.91%)
     

Snowflake Signs Goldman as Customer in Push for Banking Deals

Nico Grant and Dina Bass
·2 min read

(Bloomberg) -- Snowflake Inc., a software maker whose stock debuted with the biggest U.S. initial public offering in 2020, signed a deal worth millions of dollars with Goldman Sachs Group Inc. earlier this year, people familiar with the matter said.

The renewal contract was signed in Snowflake’s second fiscal quarter, which ended in July, said the people, who asked not to be identified discussing a deal that hasn’t been publicly disclosed. Representatives for Snowflake and Goldman Sachs declined to comment. Goldman began using Snowflake’s technology more than two years ago for its Marcus unit and transaction-banking platform, one of the people said.

Snowflake’s data-warehouse software is like a vacuum sucking up information strewn across different systems, so that businesses can analyze it all together. The company competes against the cloud-computing divisions of Amazon.com Inc., Microsoft Corp. and Alphabet Inc., as well as open-source vendor Cloudera Inc. and database stalwart Oracle Corp.

San Mateo, California-based Snowflake listed on the New York Stock Exchange in September in the largest IPO ever for a software maker. Goldman Sachs acted as one of the lead underwriters for that listing. Since the IPO pricing, the stock has almost doubled to $238, pushing the company’s market value to about $67 billion.

Snowflake has sought to sign more large enterprise clients and sees the financial-services industry as a key part of that effort. Capital One Financial Corp., which is known for being early to adopt cloud technology, became a Snowflake client in July 2017. That contract is now valued around $100 million, a person familiar with the situation told Bloomberg in September. Capital One was the first customer for Virtual Private Snowflake, a product for highly regulated industries that handle particularly sensitive data. Capital One also invested in a Snowflake funding round in 2017.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.