Progress Software announced on 22 September that it had completed a $400M acquisition of substantially all the assets of Domo’s AI and data platform business, adding a customer base of over 2,400 businesses.
Key points
- Progress paid $400M using cash and its existing revolving credit facility.
- The purchase covers substantially all assets of Domo’s AI and data platform business and certain liabilities.
- Progress plans to place Domo’s cloud-native platform within its existing data platform offerings.
- Progress plans to discuss the deal’s financial impact on 30 September.
Progress funds $400M deal with cash and credit
Progress said it funded the $400M payment through a combination of cash and its existing revolving credit facility. It also assumed certain liabilities as part of the transaction. The assets acquired belong to Domo’s AI and data platform business, rather than representing a purchase of Domo in its entirety.
The use of the credit facility makes borrowing part of Progress’s financing for the deal. The acquisition also puts Progress in charge of integrating the purchased business into its own data platform offerings, a step the company identifies as a risk in its announcement.
Progress provides software for application development and for managing data and infrastructure. Its products include OpenEdge, MOVEit, Chef and ShareFile. The Domo purchase adds a business intelligence and data platform business to that portfolio, bringing analytics and data integration capabilities, Kalkine Media reported.
Earlier acquisitions include Nuclia, an AI search company, and ShareFile, which Progress bought from Cloud Software Group. Kalkine Media described Progress’s approach as buying established software businesses with loyal customers and recurring revenue, then integrating them and using cash flow for further acquisitions and share buybacks.
Domo brings over 2,400 business customers
Progress said Domo brings a customer base of over 2,400 businesses, alongside global strategic partners that include cloud data warehouse providers. Progress’s risk statement separately cites the possibility that the acquisition could disrupt relationships with licensees and other business partners.
Progress plans to incorporate Domo’s cloud-native AI and data platform business into its existing data platform offerings. The company says the combination will help customers connect and govern enterprise data for AI and agentic initiatives. That description sets out Progress’s intended use of the platform, rather than a measured financial result from the acquisition.
Yogesh Gupta, Progress’s chief executive, said organisations pursuing AI need data and knowledge alongside governance, security and oversight. He described the Domo business as strengthening Progress’s ability to provide that foundation. Gupta also pointed to Domo’s technology, team and customer base as reasons for the purchase.
Progress uses Chef to manage infrastructure, MOVEit to move data safely, ShareFile to exchange business materials, OpenEdge for business applications, and Telerik and Kendo UI to design application screens, according to Kalkine Media. Domo’s platform is due to sit with Progress’s data offerings within that broader software portfolio.
Progress identifies integration and synergy risks
Progress listed several risks to the results it anticipates from the transaction. They include whether the Domo business can be integrated successfully and whether expected synergies or tax benefits will be realised. It also cited transaction costs and actual or contingent liabilities.
The company warned that disruption from the purchase could make it harder to maintain relationships with employees, licensees and other business partners. Those risks attach to a deal that includes both Domo’s platform assets and an existing customer base, rather than a technology purchase alone.
Progress will provide further information on the acquisition’s financial impact during its third-quarter earnings conference call on 30 September at 5:00 p.m. ET, the company said.
