Progress Software Bets on AI With $400 Million Deal for Domo's Data Platform

Progress Software agreed to buy Domo’s AI and data platform business for a headline price of $400 million , with a net purchase price estimated at about $355 million after cash and tax benefits.

Management said the deal fits Progress’s AI strategy by combining Domo’s cloud-native data platform with Progress’ capabilities in structured/unstructured data, governance, and agentic RAG to improve accuracy and lower AI costs.

Progress expects the acquisition to close within its fiscal year ending Nov. 30, 2026 , and said it should keep pro forma net leverage under 3x while it plans to deleverage quickly after closing.

Progress Software NASDAQ: PRGS said it has entered into an agreement to acquire Domo’s AI and data platform business in a transaction valued at a headline purchase price of $400 million, executives said on a conference call discussing the deal.

Anthony Folger, chief financial officer of Progress Software, said the company is acquiring “substantially all the assets” of Domo and assuming only certain liabilities. Progress has also agreed to pay up to $15 million of seller transaction expenses.

Folger said the purchase price includes a minimum acquired cash balance of $25 million and an estimated $35 million in net present value of tax benefits, resulting in a net purchase price of about $355 million.

Based on Domo’s fiscal 2026 results, Folger said the net purchase price represents a revenue multiple of “slightly more than one.”

Progress plans to finance the acquisition with cash on hand and a portion of the current capacity on its revolving credit facility.

“Due to the strong deal economics, we don’t expect our pro forma net leverage ratio to be affected materially and believe it will remain under three times on a pro forma basis,” Folger said. He added that Progress intends to “deleverage quickly and aggressively” after the transaction closes.

The acquisition is subject to regulatory approvals and customary closing conditions. Folger said Progress expects the deal to close within its current fiscal year ending Nov. 30, 2026.

He also said the company reiterated its third-quarter guidance “at or above the high end” of the range it provided last quarter.

Yogesh Gupta, chief executive officer of Progress Software, said the acquisition fits into the company’s AI product strategy by combining Domo’s cloud-native AI and data platform with Progress’ capabilities in structured and unstructured data management, data semantics and agentic retrieval-augmented generation, or RAG.

Gupta said enterprises need “context and control” to make AI effective, noting that organizational knowledge is often fragmented across systems of record, unstructured content and siloed applications.

Gupta described Domo’s platform as an intuitive, scalable and secure cloud-native AI and data platform that automates the ingestion and transformation of data from a wide range of sources. He said organizations can store data in Domo’s cloud platform or in partner cloud data warehouses such as Snowflake or Databricks.

According to Gupta, combining Domo’s offerings with the Progress Data Platform will help customers aggregate and interpret enterprise knowledge across both structured and unstructured data. He said the combined capabilities are intended to he...