Progress Software to Acquire Domo's AI and Data Platform Business for $400M
PRGS sits 59% above its 52-week low of $23.82.
Summary
Progress Software announced a definitive agreement to acquire Domo's AI and data platform business for $400 million in cash, expanding its data platform portfolio and adding over 2,400 customers. The deal is expected to close by November 30, 2026, and will be funded with cash and existing credit facilities.
Key Events · M&A and Partnerships · PRGS
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Acquisition of Domo's AI and Data Platform Business
Progress Software entered into a definitive asset purchase agreement to acquire substantially all assets and assume certain liabilities of Domo's AI and data platform business for $400 million in cash.
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Transaction Financing
The purchase will be funded through a combination of cash on hand and borrowings under Progress's existing $1.5 billion revolving credit facility, with no material impact on pro forma net leverage.
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Guidance Reiteration
Progress reiterated its Q3 fiscal 2026 guidance, expecting revenue and non-GAAP EPS at or above the high end of the previously issued range.
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Expected Closing Timeline
The transaction is expected to close within Progress's fiscal year ending November 30, 2026, subject to regulatory approvals and customary closing conditions.
Analysis · PRGS · Technology
In a transformative move that significantly broadens its data platform portfolio and brings in over 2,400 customers, Progress Software is acquiring Domo's AI and data platform business for $400 million in cash. The deal is structured as an asset purchase, with Progress assuming only certain liabilities, and will be funded through cash on hand and its existing $1.5 billion revolving credit facility. Confidence in near-term performance is underscored by the company's reiteration of its Q3 fiscal 2026 guidance at or above the high end of prior estimates. Subject to regulatory approvals and other customary conditions, the transaction is expected to close within Progress's fiscal year ending November 30, 2026. While the acquisition aligns with the Total Growth Strategy and is expected to be accretive to AI infrastructure capabilities, integration risks and the use of debt warrant attention.
At the time of this filing, 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 filing was assessed with positive market sentiment and an importance score of 9 out of 10.