Digi International Acquires Jolt Software for $145.5M to Enhance SmartSense Business

Digi International has acquired 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, expanding its offerings to the retail and food service industries.

Minneapolis, MN – July 2, 2025 – Digi International Inc. (Nasdaq: DGII), a leading global provider of business and mission-critical Internet of Things (IoT) products, services, and solutions, has announced the acquisition of Jolt Software, Inc. for approximately $145.5 million in cash. The acquisition aims to significantly expand Digi's SmartSense® business by integrating Jolt's capabilities in the retail and food service industries.

The acquisition is expected to be immediately accretive to adjusted earnings per share upon closing and will generate an incremental $11 million in annualized adjusted EBITDA through synergies by the end of calendar 2026. Digi anticipates a net debt to adjusted EBITDA leverage ratio of 1.46x following the transaction. The deal is funded using Digi's current credit facility.

Jolt Software, Inc. provides operations execution software that helps businesses achieve team accountability, digital food safety compliance, and improved employee performance. With over $20 million in annual recurring revenues (ARR) in its fiscal year ended January 31, 2025, Jolt's growth rate exceeded that of Digi's existing IoT Solutions segment for the fiscal year ended September 30, 2024. The acquisition will integrate Jolt into SmartSense and report results as part of the IoT Solutions segment.

Digi International's President and CEO, Ron Konezny, stated, "This acquisition positions Digi to deepen customer engagement, expand our market footprint, and accelerate ARR growth. Jolt's proven platform and customer base complement SmartSense’s IoT-driven compliance and analytics capabilities. Together, we’re making a strategic step forward in our mission to deliver intelligent automation and operational excellence across industries."

The combined capabilities of SmartSense and Jolt will provide customers with real-time monitoring, sensor technology, and prescriptive analytics, coupled with Jolt's intuitive digital task workflows, employee scheduling, communication tools, and label printing and management. This integrated solution addresses the growing need for intelligent, scalable, and user-friendly tools that simplify complexity across dynamic operating environments.

The acquisition is expected to accelerate Digi's ARR growth, with the company projecting a 28% increase for fiscal 2025. Revenue and Adjusted EBITDA are projected to grow approximately 1% and 8% to 9%, respectively, compared to the prior fiscal year. Digi no longer expects to be net cash positive by the end of the fiscal year due to debt financing associated with the Jolt acquisition.

The acquisition will be discussed in a conference call on Tuesday, August 19, 2025, at approximately 8:30 a.m. ET (7:30 a.m. CT). For more information, visit Digi's investor relations page at [Digi's Investor Relations](https://digi.gcs-web.com/).

References:
[1] https://www.digi.com/company/press-releases/2025/digi-acquires-jolt-to-accelerate-arr-growth