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BURLINGTON, Mass. - Progress Software Corporation (NASDAQ:PRGS), a technology company with a market capitalization of $2.76 billion and robust annual revenue of $806.74 million, announced today the acquisition of Nuclia, a company specializing in agentic Retrieval-Augmented Generation (RAG) AI solutions. The transaction was completed today for an undisclosed amount that the company described as "immaterial" to its financial position. According to InvestingPro data, Progress Software maintains a strong financial health rating, suggesting solid acquisition capacity.
Nuclia provides a RAG-as-a-service product that allows organizations to leverage their proprietary business information to generate verifiable AI answers. The self-service SaaS solution is designed to be accessible to businesses of various sizes without requiring significant upfront investment.
"Nuclia’s easy-to-use, self-service SaaS product democratizes the use of trustworthy and verifiable GenAI," said Yogesh Gupta, CEO of Progress Software, in a press release statement.
The acquisition is expected to enhance Progress Software’s Data Platform offerings while expanding its market reach to organizations seeking to implement agentic RAG technology.
Eudald Camprubí, CEO and Co-founder of Nuclia, stated that the company’s approach "combines the power of large language models with business’ own proprietary data to provide accurate and trustworthy answers."
Progress Software, which trades on the Nasdaq under the ticker PRGS, provides AI-powered digital experience and infrastructure software. The company serves approximately 4 million developers and technologists across hundreds of thousands of enterprises globally.
Nuclia will continue to operate as part of Progress Software following the acquisition.
In other recent news, Progress Software reported impressive financial results for the first quarter of fiscal year 2025, with earnings per share (EPS) reaching $1.31, surpassing the forecast of $1.06. Revenue for the quarter totaled $238 million, slightly exceeding the anticipated $235.6 million. The company’s strong performance was highlighted by a 48% year-over-year increase in Annualized Recurring Revenue (ARR), reaching $836 million. The successful integration of ShareFile, an acquired asset, was noted as a significant contributor to this growth. DA Davidson maintained its Buy rating for Progress Software, with a price target of $75, citing the company’s robust inorganic growth and the management’s ability to achieve targeted operating margins of 40%.
Progress Software’s strategic focus on both organic and inorganic growth, particularly in the SaaS sector, has been well-received, with its SaaS capabilities now contributing nearly 30% of total revenue. The company’s operating margin for the quarter stood at 39%, reflecting effective cost management and execution. Looking ahead, Progress Software has provided revenue guidance between $958 million and $970 million for fiscal year 2025, with EPS expected to range from $5.25 to $5.37. The company continues to focus on debt repayment and exploring further M&A opportunities, emphasizing its disciplined approach to acquisitions.
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