Progress Software Acquires Domo's AI Data Assets for $400M

Progress Software is set to significantly bolster its data intelligence capabilities with the acquisition of substantially all assets and certain liabilities from Domo, specifically its AI and data platform business. The all-cash transaction, valued at $400 million, is designed to enhance Progress's ability to transform disparate enterprise data into governed, AI-ready insights. This strategic move is expected to close within Progress's fiscal year ending November 30, 2026, pending regulatory approvals.

The integration of Domo's agentic platform for the intelligent enterprise is anticipated to create powerful synergies with Progress's existing data offerings. This combination aims to deliver robust, secure, and scalable solutions for AI data readiness, a critical need in today's data-intensive business environment. The acquisition not only brings advanced technology but also a substantial customer base of over 2,400 businesses, alongside Domo's established network of cloud data warehouse technology partners.

This acquisition aligns with a broader market trend where companies are prioritizing data governance and AI enablement to unlock competitive advantages. The market for data management and AI platforms is experiencing rapid expansion, driven by the increasing volume and complexity of business data. Progress Software's move positions it to capture a larger share of this growing market by offering a more comprehensive suite of tools for data integration, analysis, and AI deployment.

Financing for the deal will be a mix of Progress Software's existing cash reserves and its revolving credit facility. The company anticipates that this acquisition will positively impact its financial performance, projecting that revenue and non-GAAP earnings per share for its fiscal third quarter will meet or exceed the upper end of its previously issued guidance. Progress is scheduled to release its full third quarter financial results on September 30, 2026.

Yogesh Gupta, CEO of Progress Software, emphasized the critical link between accurate data and effective AI outcomes. He stated, “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 their team’s expertise in cloud architectures and analytics, are highly complementary to our expanding Progress data platform capabilities that significantly improve the security, governance and cost of our customers’ AI initiatives.”

Echoing this sentiment, Josh James, Founder and CEO of Domo, highlighted the foundational principle of their platform: “We have built Domo around the simple idea that trusted data should help people make better decisions and take action. 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.”

Citi acted as the exclusive financial advisor to Progress Software, with DLA Piper LLP providing legal counsel. Jefferies LLC served as the exclusive financial advisor to Domo, and Goodwin Procter LLP was its legal counsel. The successful integration of Domo's assets is expected to solidify Progress Software's position as a key player in the enterprise data and AI solutions sector.