Digi International Acquires Jolt Software for $145.5M, Enhancing SmartSense Offerings and Accelerating Recurring Revenue Growth

Digi International has acquired Jolt Software for $145.5M to enhance its SmartSense offerings, aiming to improve team accountability and digital food safety compliance. The acquisition is expected to accelerate Digi's annual recurring revenue growth and strengthen its market position in various verticals. The transaction is anticipated to be immediately accretive to Digi's adjusted earnings per share and generate significant synergies by 2026.

Digi International Inc. (DGII) has announced the acquisition of Jolt Software Inc. for approximately $145.5 million in cash, marking a significant move to enhance its SmartSense® IoT business. The acquisition aims to strengthen Digi's market presence and accelerate its SaaS growth strategy, particularly in the foodservice, grocery, convenience, and healthcare sectors [1].

Jolt Software, which generated over $20 million in 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].

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

The acquisition is expected to be immediately accretive to Digi's adjusted earnings per share and generate significant synergies by 2026. The company 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 Saudi Arabia food safety testing market, valued at US$ 347.13 million in 2024, is expected to reach US$ 598.44 million by 2033, growing at a CAGR of 6.24% during the forecast period 2025–2033. This growth is driven by strict regulations and enforcement, rising consumer awareness, and Vision 2030 investments in food security and local production [2].

The Saudi Food and Drug Authority (SFDA) is spearheading a regulatory revolution, mandating calorie and allergen information on menus and disclosing caffeine content and high-sodium warnings. These regulations are forcing businesses to seek reliable testing partners to ensure full compliance. The market is shifting from traditional methods to rapid testing technologies and digitalization using blockchain for supply chain transparency [2].

The acquisition of Jolt Software by Digi International is a strategic move that aligns with the broader trend of enhancing digital food safety compliance and improving team accountability. As the Saudi Arabia food safety testing market continues to grow, Digi's enhanced SmartSense platform is poised to play a significant role in meeting the increasing demand for advanced testing and compliance solutions.

References:
[1] https://www.nasdaq.com/articles/digi-international-acquires-jolt-software-1455-mln-boost-smartsense-iot-platform
[2] https://www.globenewswire.com/news-release/2025/08/19/3135678/0/en/Saudi-Arabia-Food-Safety-Testing-Market-to-Surpass-Valuation-of-US-598-44-Million-by-2033-Astute-Analytica.html