Progress Software closes $400 million purchase of Domo’s business
The asset deal moves Domo’s analytics platform, staff and 2,400-plus customers to Progress, while Domo’s listed shell keeps more than $900 million in tax losses.
By Tech CEO Daily Staff, Newsroom
· 3 min read
The news
Progress Software said on September 22 that it has completed its acquisition of substantially all of the assets of Domo’s AI and data platform business for $400 million. Progress paid with cash on hand and its existing revolving credit facility.
The deal, first announced on July 22, was structured as an asset purchase rather than a merger. Progress takes over Domo’s operating business, technology, customer contracts, employees, intellectual property and foreign subsidiaries, and assumes certain liabilities. It gains more than 2,400 business customers and Domo’s partnerships with cloud data warehouse providers.
The unusual structure matters for Domo shareholders. Domo, Inc. remains a publicly listed holding company under a new name and ticker, keeping more than $900 million of net operating loss carryforwards. Domo said at signing that it would pay off its credit facility at closing and expected to be left with about $246 million in net cash, or $4.84 per share. Founder Josh James, the controlling shareholder, approved the sale by written consent.
Progress said it will fold Domo into its existing data platform products and pitched the combination as a way to give companies trusted data and governance for AI projects. It will discuss the financial impact on its third-quarter earnings call on September 30.
The numbers
- Purchase price
- $400M cash
- Domo customers acquired
- 2,400+
- Tax losses retained by Domo shell
- $900M+
- Expected Domo net cash per share (at signing)
- $4.84
Why CEOs should care
Progress said it expects synergies from the deal, and in software acquisitions synergies usually mean consolidated teams and products. That can bring stability, but it can also bring tighter support, fewer bespoke features and firmer price increases at renewal. Domo customers should check assignment clauses, price-protection terms and data-export rights now, while the integration plan is still taking shape.
The deal also shows where standalone BI is heading. A company that once raised money at high valuations sold its operating business for $400 million, as analytics features get absorbed into data platforms and AI assistants. Buyers of niche analytics tools should factor vendor-consolidation risk into multi-year commitments and keep migration paths open.
What's next
Progress reports third-quarter results on September 30 at 5:00 p.m. ET, when it is expected to detail Domo’s revenue contribution and integration plans.
Sources
- PrimaryProgress Software Completes Acquisition of Domo’s AI and Data Platform Business (Exhibit 99.1)— SEC / Progress Software
- PrimaryProgress Software to Acquire Domo’s AI and Data Platform Business (Exhibit 99.1)— SEC / Progress Software
- PrimaryDomo 8-K exhibit on sale of substantially all assets to Progress— SEC / Domo
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