what kind of softwares they acquires?

Progress Software Corporation executes a highly disciplined M&A approach known internally as their "Total Growth Strategy." Rather than buying flashy, high-growth, cash-burning startups, they target very specific types of mature, B2B enterprise software companies.

When evaluating what kind of software Progress acquires, their targets generally share distinct technological categories and business characteristics.

Technological Categories

Progress historically focuses on "infrastructure software"—the foundational, behind-the-scenes tools that businesses need to keep their operations running, secure, and compliant. Their acquisitions generally fall into these buckets:

1. Secure Data Exchange and Collaboration Software that helps enterprises securely move, store, and manage sensitive files both internally and externally, often to meet strict compliance standards (like HIPAA or GDPR).

• Examples: ShareFile (secure document sharing and client portals), Ipswitch / MOVEit (managed file transfer).

2. DevOps and IT Operations (ITOM) Tools used by system administrators, IT teams, and developers to automate, monitor, and manage corporate networks and application deployment.

• Examples: Chef (infrastructure-as-code and DevSecOps automation), Ipswitch / WhatsUp Gold (network monitoring).

3. Application Experience and Performance Software that ensures enterprise applications remain highly available, fast, and secure for the end user.

• Examples: Kemp Technologies (load balancers and application delivery controllers).

4. Complex Data Management and AI Integration Databases and search tools that help large enterprises organize massive amounts of unstructured data and, more recently, apply AI to that data.

• Examples: MarkLogic (enterprise NoSQL databases and semantic data management), Nuclia (AI-driven search and Retrieval-Augmented Generation).

The Financial and Business Profile

Beyond the specific code or product category, Progress only buys software companies that fit a strict business profile:

• Mission-Critical and "Sticky": They buy software that becomes deeply embedded in a company's daily operations. Once a hospital uses MOVEit to transfer patient files, or a bank uses Chef to manage its servers, it is very difficult and expensive to rip that software out. This guarantees high customer retention.
• High Annual Recurring Revenue (ARR): They target companies with predictable, subscription-based revenue streams.
• Margin Expansion Potential: Progress looks for companies that might have great products but are operating inefficiently. Once acquired, Progress integrates them into its centralized corporate structure (cutting redundant HR, legal, and back-office costs) to aggressively drive the acquired company's operating margins up toward Progress's corporate goal of around 40%.
• Complementary to Existing Portfolios: They look for products they can easily cross-sell to their massive existing base of enterprise customers and developers.

In summary, Progress acquires unglamorous but highly essential, sticky B2B infrastructure software that generates highly predictable cash flow.