Domo Sells Core Business to Progress Software for $400M, Retains NOLs and Public Listing
DOMO sits 71% above its 52-week low of $1.84.
Summary
Domo has agreed to sell its core business to Progress Software for $400 million, retaining its NOLs and public listing to pursue a new strategy.
Key Events · M&A and Partnerships · DOMO
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Asset Sale to Progress Software
A definitive agreement has been signed to sell substantially all assets and employees, excluding NOL carryforwards, to Progress Software for $400 million in cash, subject to adjustments.
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Financial Impact
After paying off its credit facility, Domo expects net cash of approximately $246 million, or $4.84 per share—an 81% premium to the 30-day volume-weighted average price.
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Retention of NOLs and Public Listing
Over $900 million in NOL carryforwards will be retained, and the company will remain publicly listed under a new name and ticker, seeking to acquire assets that can utilize the tax attributes.
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Stockholder Approval Secured
Majority stockholders, including Founder and CEO Josh James, executed an irrevocable written consent approving the transaction, eliminating the need for a stockholder vote.
Analysis · DOMO · Technology
In a transformative move following a going-concern warning and debt covenant default, Domo is selling substantially all of its operating assets and employees to Progress Software for $400 million in cash. The company will retain over $900 million in net operating loss carryforwards and remain a publicly-listed shell with a new name and ticker, planning to use the proceeds to acquire new assets that can utilize the NOLs. Approved by majority stockholders via written consent, the transaction is expected to close by November 30, 2026, and includes a $13.5 million termination fee. This sale represents a near-total exit from Domo's core AI and data platform business, fundamentally altering the investment thesis.
At the time of this filing, DOMO was trading at $3.15 on NASDAQ in the Technology sector, with a market capitalization of approximately $142.2M. The 52-week trading range was $1.84 to $18.49. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.