Progress Software (PRGS) investor relations material

Deal rationale and strategic fit

• Acquisition strengthens AI and data platform leadership by combining complementary capabilities in structured and unstructured data management, semantic analysis, agentic RAG, and AI-driven automation.

• Expands data platform portfolio, accelerates AI-ready data layer capabilities, and enables organizations to securely transform fragmented knowledge into AI-ready intelligence.

• Adds over 2,400 global business customers, with 86% on consumption pricing, and a global ecosystem of cloud data warehouse partnerships.

• Domo's cloud-native platform automates data ingestion and transformation, enhancing data readiness for AI and complementing existing cloud architectures and analytics expertise.

• Limited customer overlap allows for cross-selling opportunities and broader market reach.

Financial terms and conditions

• Headline purchase price is $400 million, with a net purchase price of approximately $355 million after accounting for acquired cash, tax benefits, and up to $15 million in seller transaction expenses.

• Structured as an asset purchase, acquiring substantially all assets and certain liabilities; Domo brand name and marks transfer.

• Domo, Inc. remains publicly listed under a new name and ticker post-closing.

• Acquisition will be financed with cash on hand and a portion of the revolving credit facility; no material impact to pro forma net leverage ratio, expected to remain below 3x.

• Revenue multiple is slightly above one based on Domo's fiscal 2026 results.

Synergies and expected cost savings

• Cost synergies targeted to be fully realized by end of FY2027, with a historical track record of improving margins for acquired, break-even businesses within about a year.

• Anticipated ability to bring Domo's margin profile in line with existing operations through integration.

• Combined offerings expected to improve security, governance, and cost efficiency for AI initiatives.

• Enhanced data integration and analytics capabilities are expected.

• Targeting pro forma operating margins similar to previous acquisitions.