Progress Software to Buy Domo Platform in $400 Million Cash Deal
The AI infrastructure software company will fold Domo’s cloud-native data platform into its existing offerings and keep the seller as a listed shell with net cash and NOLs.
Progress Software (PRGS) agreed to acquire substantially all of the assets and employees of Domo, Inc. (DOMO), including its AI and data products platform, for $400 million in cash, subject to customary purchase price adjustments.
The deal is structured as an asset purchase. Progress will assume certain liabilities and exclude Domo’s net operating loss carryforwards. Closing is currently expected within Progress’ fiscal year ending November 30, 2026, subject to regulatory approvals and other customary conditions. Progress expects to finance the transaction with a combination of cash and its existing revolving credit facility.
At closing, Domo is expected to have net cash of approximately $246 million, or $4.84 a share, representing an 81% premium to the 30-day volume-weighted average price, as well as more than $900 million of NOL carryforwards. The Delaware holding company will change its name and ticker and remain a separate publicly listed entity with limited operating expenses and a debt-free balance sheet. Domo’s board intends to use the proceeds to identify opportunities to monetize the NOLs.
Domo’s board unanimously approved the transaction following a strategic alternatives review. Until closing, the companies will continue to operate separately, and Domo will continue to serve customers in the ordinary course. Progress expects to continue serving Domo customers and supporting the Domo technology platform, bringing additional scale, resources, and enterprise software expertise to its development.
Progress, an AI infrastructure software leader, said Domo’s cloud-native AI and data platform business will become part of its existing data platform offerings, further strengthening its ability to help customers connect, govern and activate enterprise data for secure, scalable AI and agentic initiatives. The company said Domo’s agentic platform complements and broadens those offerings. Domo will add a customer base of over 2,400 businesses, as well as a global and strategic ecosystem of cloud data warehouse technology partnerships.
“As organizations pursue AI initiatives, the challenge is no longer simply access to AI technology,” said Yogesh Gupta, CEO of Progress Software. “It is creating the right context, grounded in trusted data and knowledge, and maintaining the right control through governance, security and oversight. Together, context and control enable organizations to adopt and scale AI with confidence.”
Gupta also said effective AI starts with accurate, trusted data and content, and that Domo’s product capabilities, coupled with the team’s expertise in cloud architectures and analytics, are highly complementary to Progress’ expanding data platform capabilities. Josh James, founder and CEO of Domo, said the addition of Domo’s product capabilities to the Progress data platform will give customers a stronger foundation for building AI that understands their business, works from governed data and can be trusted to support meaningful decisions.
Citi is serving as the exclusive financial advisor for Progress, with DLA Piper LLP (US) as legal counsel. Jefferies LLC is the exclusive financial advisor to Domo, and Goodwin Procter LLP is legal counsel. The acquisition is another example of the continued execution of Progress’ Total Growth Strategy.