Digi International Acquires Jolt for $145.5mln to Boost ARR Growth

• Digi International acquires Jolt Software for $145.5 million in cash. • Jolt provides solutions to convenience store and food and beverage industries. • Acquisition supports Digi's SmartSense business, advancing operational intelligence and compliance automation. • Supports Digi's strategy to expand annual recurring revenues (ARR). • Acquisition is a significant milestone for Digi's SmartSense business.

Digi International Inc. (DGII) has announced the acquisition of Jolt Software Inc. for approximately $145.5 million in cash. The transaction aims to bolster Digi's SmartSense® IoT business and expand its capabilities in compliance automation and operational intelligence for foodservice, grocery, convenience, and healthcare sectors [1].

Jolt, which generated over $20 million in annual recurring revenue (ARR) in fiscal 2025, will integrate into Digi's IoT Solutions segment. This integration is expected to drive ARR growth and operational synergies, adding $11 million in adjusted EBITDA by 2026. The acquisition was funded through Digi's credit facility, resulting in a net debt to adjusted EBITDA leverage ratio of 1.46x. Additionally, the deal provides potential tax benefits through Jolt's $30 million net operating loss carryforward [1].

Ron Konezny, Digi's CEO, stated that the acquisition strengthens the company's market presence and accelerates its SaaS growth strategy. Guy Yehiav, President of SmartSense, emphasized that combining Jolt's workflow and workforce management tools with SmartSense's real-time monitoring and analytics will deliver greater efficiency, compliance, and return on investment (ROI) for customers. Josh Bird, CEO of Jolt, noted that customers will continue to benefit from Jolt's intuitive platform, now enhanced by SmartSense's IoT expertise [1].

Investors are highlighting several key points, including ARR acceleration, cross-sell opportunities, product innovation, and customer diversification within the Solutions segment. Digi has updated its fiscal 2025 guidance to reflect 28 percent ARR growth, 1 percent revenue growth, and an 8 percent to 9 percent increase in adjusted EBITDA [1].

The company will discuss the acquisition on an August 19, 2025, conference call, with webcast access available via Digi's investor relations website. Digi International closed at $33.46 on Monday, July 2, 2025, up 3.78%, and is currently trading flat after hours on the NasdaqGS [1].

References:
[1] https://www.nasdaq.com/articles/digi-international-acquires-jolt-software-1455-mln-boost-smartsense-iot-platform