Domo sold for $400M cash; now a cash shell with tax assets
Domo agrees to sell its business for $400M cash Domo will sell substantially all of its AI and data platform to Progress Software for $400 million cash. After the deal, Domo keeps about $246 million of net cash — roughly $4.84 per share — an 81% premium to its recent average price. That is why the stock jumped.
The asset sale is the single event that redefines what DOMO is worth and why it moved.
Deal closes; Domo becomes a listed cash-and-tax-asset shell Progress closed the $400 million purchase, so Domo's operating business now belongs to Progress. What remains is a public holding company with cash and over $900 million of tax losses it can try to monetize, and it may return capital to shareholders.
The closing confirms the deal is done and shifts the story to what shareholders now own.
Domo's business shrinks inside Progress, but adds profit later Progress expects Domo's ongoing revenue to settle around $280–290 million, with planned customer losses and less services work. Once fully integrated by end of fiscal 2027, Domo should add over $100 million of yearly profit. So near-term sales fall while profit potential rises.
This is the real counterweight: the acquired business is being shrunk before it contributes profit.
Domo folded into Progress's AI platform push Progress raised its 2026 guidance and expanded its AI platform, integrating Domo and ShareFile into its Agentic RAG tools that connect business systems to AI agents. This gives Domo's technology a larger owner and a growth path, though margin pressure from integration remains a risk.
Shows the buyer's plans for Domo's technology, supporting the value of the deal.