Domo, Inc. has agreed to sell substantially all assets, employees, and certain liabilities of its AI and Data Platform Business to Progress Software Corporation for an aggregate cash purchase price of approximately $400 million, according to a July 22, 2026, SEC filing.
Terms of the Asset Sale Agreement
The transaction, detailed in an 8-K filing on July 22, involves the sale of Domo's core AI and data platform operations. While the purchase price is set at $400 million, the final amount remains subject to a downward adjustment if the cash transferred at closing falls below $25 million or if any indebtedness is not repaid by the time of the transaction's completion.
Domo's board of directors has already unanimously approved the deal. Furthermore, a majority of the company's stockholders have provided written consent to approve the transaction. The agreement also includes a $13.5 million termination fee that Domo would be enough to pay to Progress in specific scenarios involving a failure to close the deal or the emergence of competing proposals.
Future Corporate Structure
Under the terms of the agreement, Domo does not intend to liquidate following the sale. Instead, the company will remain a publicly listed holding company, though it is expected to adopt a new name and ticker symbol once the assets are transferred.
The filing indicates that the transaction is subject to customary closing conditions, which include obtaining antitrust clearance under the Hart-Scott-Rodino Act and the mailing of an information statement to stockholders. The agreement contemplates a closing date no later than November 30, 2026.
Financial Impact and Cash Position
The sale is expected to significantly alter Domo's balance sheet. Upon the successful closing of the deal, the company expects to hold approximately $246 million in net cash, which represents roughly $4.84 per share. This figure reflects an implied 81% premium relative to the 30-day volume-weighted average price.
Domo also anticipates achieving a debt-free balance sheet through the repayment of its credit facility as part of this transaction. To manage its remaining assets, the board has adopted a Tax Benefits Preservation Plan designed to protect the company's substantial tax attributes.
Retention of Tax Assets
A critical component of Domo's post-sale strategy involves its retention of net operating loss (NOL) carryforwards. The company expects to preserve more than $900 million in NOLs following the transaction.
As part of its long-term planning, Domo intends to evaluate potential acquisitions that could utilize these significant tax assets. Additionally, the company is exploring various options for returning capital to its stockholders.
Company Background and Operations
Domo, Inc. maintains its corporate headquarters at 702 East Utah Valley Drive in American Fork, Utah. The company's investor relations department manages communications regarding its SEC filings and financial reports through its official investor portal.
The company's ongoing operations include a wide range of data-focused services, including data integration, transformation, science, visualization, and embedded analytics, as well as ETL and IoT application development.
Ongoing Operations
Until the transaction officially closes, Domo and Progress Software Corporation will continue to operate as separate, independent companies. The voting and support agreement currently binds stockholders holding sufficient voting power to ensure the deal's approval path remains secure.
