Digi acquires Jolt Software

* Digi International (NASDAQ:DGII [https://seekingalpha.com/symbol/DGII]) said on Monday that it has acquired [https://seekingalpha.com/pr/20204214-digi-acquires-jolt-to-accelerate-arr-growth-and-strengthen-smartsense-s-market-leading] Jolt Software, a solutions provider to the convenience store and food and beverage industries, for approximately $145.5M in cash.
* The acquisition marks a significant milestone for Digi’s SmartSense business in advancing operational intelligence and compliance automation across foodservice, grocery, convenience, healthcare and other verticals.
* The acquisition supports Digi’s strategy to expand annual recurring revenues through high-value, scalable subscription offerings. Jolt will be integrated into SmartSense and will report results as part of the IoT Solutions segment.
* Digi funded the purchase price utilizing its current credit facility.
* In its fiscal year ended January 31, 2025, Jolt generated over $20M in ARR, with ARR growth rate from the prior fiscal year exceeding the year-over-year growth rate of ARR in Digi’s existing IoT Solutions segment for its fiscal year ended September 30, 2024.
* The transaction is expected to be immediately accretive to adjusted earnings per share upon closing. Digi also expects to generate an incremental $11M in annualized adjusted EBITDA through synergies by the end of calendar 2026.
* Upon completion of the acquisition, Digi anticipates a net debt to adjusted EBITDA leverage ratio of 1.46x.

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