American Fork-based Domo, a cloud software company that specializes in business intelligence, data apps and artificial intelligence tools, has completed the sale of substantially all of the assets of its AI and data platform business and certain liabilities to Massachusetts-based Progress Software Corp. in a $400 million deal.
The transaction was announced earlier this summer.
Domo will continue operating as a publicly listed corporation and has changed its name to Huckleberry.ai Inc. Its stock is trading on the Nasdaq Global Market under the symbol “HUCK.” Josh James, founder and CEO, will continue to lead the company alongside the current board of directors.
Progress acquired substantially all of the company’s assets and employees, excluding the company’s approximately $900 million in net operating loss carryforwards, and assumed some of its liabilities. The company’s AI and data platform have become part of Progress.
Progress is a public company that makes infrastructure software for building, deploying and managing business applications. Founded in 1981, it operates in 20 countries with about 2,800 employees.
Huckleberry begins with a debt-free balance sheet. At closing, the company repaid all outstanding amounts under its credit facility and repurchased outstanding warrants held by the lenders. After giving effect to the purchase price adjustments set out in the definitive agreement for the transaction, certain other adjustments agreed between the parties and payment of other pre-existing obligations at closing, the company starts with cash of approximately $221 million, equivalent to approximately $4.46 per share.
“As organizations pursue AI initiatives, the challenge is no longer simply access to AI technology,” said Yogesh Gupta, CEO of Progress Software. “It is creating the right context, grounded in trusted data and knowledge, and maintaining the right control through governance, security and oversight. Together, context and control enable organizations to adopt and scale AI with confidence. We are excited to welcome Domo to Progress because it strengthens our ability to help customers build that foundation.”
Gupta said Domo gives Progress “innovative technology, a talented team, a passionate customer base and a shared belief that organizations should be able to unlock the full value of their data. We see exciting opportunities ahead to build on our respective strengths and to continue helping organizations thrive in a world powered by AI.”