Progress to buy Domo assets in USD $400 million deal

Progress has agreed to acquire substantially all of Domo's assets and assume certain liabilities related to its AI and data platform business in a deal valued at USD $400 million.

Structured as an asset purchase, the transaction includes Domo's AI and data products platform. Progress expects it to close within its current fiscal year, subject to regulatory approvals and customary conditions.

Domo brings a customer base of more than 2,400 businesses and a network of cloud data warehouse technology partnerships. For Progress, the acquisition adds another data and analytics business to its software portfolio as companies seek better ways to organise internal data for use in AI systems.

Progress plans to fund the purchase with a combination of cash and its existing revolving credit facility. It also expects fiscal third-quarter revenue and non-GAAP earnings per share to be within or above the high end of its previously issued guidance.

Deal rationale

Progress presented the acquisition as part of its broader expansion in data platform software. It said Domo's products and technical team align with its existing focus on data management, governance and analytics.

The deal is driven by demand from businesses seeking to make large volumes of internal information usable for AI applications while maintaining oversight of how that data is managed. Software suppliers have increasingly positioned data integration, governance and analytics tools as essential infrastructure for corporate AI projects.

In a statement accompanying the announcement, Yogesh Gupta, Chief Executive Officer of Progress Software, outlined the company's view of the market.

"Effective AI starts with accurate, trusted data and content to provide the context for accurate and verifiable outcomes," Gupta said.

"Domo is a leading AI and data platform that enables businesses to access, integrate and leverage their data at scale. Domo's product capabilities, coupled with its team's expertise in cloud architectures and analytics, are highly complementary to our expanding Progress data platform capabilities, which significantly improve the security, governance and cost of our customers' AI initiatives," he added.

Domo business

Domo has built its business around software that helps customers prepare, visualise, automate and distribute data across organisations. Its platform is used to connect data sources, build dashboards and applications, and support analytics and AI-related workflows.

The sale marks a significant step for Domo, whose software has long been associated with business intelligence and data visualisation. Under the agreement, Progress will assume the assets and selected liabilities connected to that AI and data platform business rather than acquire the entire listed company.

Josh James, Founder and Chief Executive Officer of Domo, said the transaction would place Domo's products within a larger data software portfolio.

"We have built Domo around the simple idea that trusted data should help people make better decisions and take action," James said.

"The addition of our product capabilities to the Progress data platform will give customers a stronger foundation for building AI that understands their business, works from governed data and can be trusted to support meaningful decisions," he added.

Portfolio strategy

Progress has pursued growth through acquisitions for years, adding products that extend its reach in application development, infrastructure and data software. The Domo transaction continues that strategy and gives the company a larger position in a market where buyers want tools that can connect fragmented corporate data with AI models and automated workflows.

The emphasis on governed data reflects a broader shift across the software industry. As businesses test generative and agent-based AI systems, concerns around data quality, security, auditability and cost have become central to purchasing decisions.

That has created an opening for vendors offering data preparation, integration and governance tools alongside analytics products. The Domo acquisition expands Progress's installed base and broadens its product set in that segment, with more than 2,400 business customers included under the agreement.

Progress said the deal aligns with its long-running acquisition strategy, which focuses on software businesses with recurring revenue, established customers and products that fit its existing portfolio. The purchase price is USD $400 million in cash.