Progress Software to Acquire Domo's AI and Data Platform Business
PRGS sits 59% above its 52-week low of $23.82.
Summary
Progress Software is acquiring substantially all assets and certain liabilities of Domo's AI and data platform business for $400 million in cash, adding a cloud-native analytics suite to its portfolio. This strategic acquisition, Progress's first major M&A move since its strong Q2 results and raised guidance, accelerates its growth strategy and positions the company to compete more directly in the AI-driven analytics space. Progress will acquire Domo's assets and employees, excluding net operating loss carryforwards, and assume certain liabilities. Domo will remain a publicly-listed corporation under a new name and ticker, continuing to be led by Founder and CEO Josh James and its Board. The deal is potentially material given Progress's $1.55 billion market cap, with Progress expecting its third-quarter revenue and non-GAAP EPS to be within or above the high end of its previously issued guidance.
At the time of this announcement, PRGS was trading at $37.91 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $23.82 to $51.28. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.