Progress Software to Buy Domo AI and Data Business for $400 Million
The asset purchase allows Progress to integrate Domo's data platform while the target preserves over $900 million in tax attributes.
Progress Software (PRGS) agreed to acquire the AI and data platform business of Domo, Inc. (DOMO) in a $400 million all-cash asset-purchase deal.
Under the terms of the agreement, Progress will acquire substantially all of Domo's assets, including its technology platform, customer contracts, intellectual property, and employees. The transaction is expected to result in net cash of approximately $246 million, or $4.84 a share, for Domo, representing an 81% premium to the 30-day volume-weighted average price.
Progress said the acquisition aligns with its strategy to provide the context and control necessary for customers to achieve business goals using AI. "Effective AI starts with accurate, trusted data and content to provide the context for accurate and verifiable outcomes," said Yogesh Gupta, CEO of Progress Software.
Domo operates an AI and data products platform designed to help organizations prepare, visualize, and automate data products across the data journey. Progress intends to bring additional scale and enterprise software expertise to the platform's ongoing development.
The transaction follows a pattern of strategic acquisitions for Progress, which previously completed the $875 million purchase of ShareFile, an AI-powered collaboration platform, in October 2024.
Following the close, Domo will remain a publicly listed corporation under a new name and ticker. The company adopted a tax benefits preservation plan to protect more than $900 million of net operating loss carryforwards. Domo's board intends to use the transaction proceeds to identify opportunities to monetize these losses or return capital to shareholders.
The deal is expected to close within Progress' fiscal year, which ends November 30, 2026. Closing is subject to customary conditions and required regulatory approvals, though the transaction is not subject to a financing condition.