Overview
- Progress agreed to acquire substantially all of Domo’s AI and data platform assets for $400 million in cash, transferring product capabilities, employees, customer relationships and certain liabilities to Progress.
- The transaction is structured as an asset purchase and is expected to close by Progress’ fiscal year end subject to regulatory approvals and customary closing conditions, with Progress planning to use cash and its revolving credit facility to fund the deal.
- The remaining publicly listed company will continue under a new name and Josh James’s leadership and will hold about $246 million in cash plus more than $900 million in net operating loss carryforwards that the board says it will try to monetize or use to return capital to shareholders.
- Domo’s shares jumped roughly 30% after the announcements and both sides disclosed financial and legal advisors, with Citi and DLA Piper advising Progress and Jefferies and Goodwin Procter advising Domo.
- The move strengthens Progress’s AI governance and data-readiness offerings but raises integration risk for Progress and near-term uncertainty over how the leftover public company will deploy its cash and tax assets, which could shape future deals or shareholder returns.