Digi International Acquires Jolt Software, Updates Guidance

Digi International has acquired Jolt Software and updated its guidance. Digi International is a global provider of IoT connectivity products, services, and solutions. The acquisition will enhance its IoT Products and Services segment, which offers embedded and wireless modules, console servers, and professional services. The IoT Solutions segment includes wireless temperature monitoring, condition-based monitoring, and employee task management services.

Digi International Inc. (DGII) has announced the acquisition of Jolt Software, Inc. for approximately $145.5 million in cash, marking a significant milestone in its strategic expansion of IoT solutions. The acquisition aims to enhance Digi's IoT Products and Services segment, which includes embedded and wireless modules, console servers, and professional services. The IoT Solutions segment, which offers wireless temperature monitoring, condition-based monitoring, and employee task management services, will benefit from Jolt's proven platform and customer base.

The acquisition of Jolt, a leading solutions provider to the convenience store and food and beverage industries, is expected to be immediately accretive to adjusted earnings per share upon closing. Digi anticipates generating an incremental $11 million in annualized adjusted EBITDA through synergies by the end of calendar 2026. The transaction is funded through Digi's current credit facility, with a net debt to adjusted EBITDA leverage ratio of 1.46x projected upon completion.

Jolt's subscription-based model adds meaningful annual recurring revenues (ARR) to Digi's SaaS revenue mix, supporting the company's strategy to expand ARR through high-value, scalable offerings. The acquisition is expected to contribute to Digi's ARR growth, with the combined entity projecting ARR growth of approximately 28% for fiscal 2025. Revenue is projected to grow by approximately 1%, and Adjusted EBITDA is projected to grow by 8% to 9% compared to the prior fiscal year.

The combined capabilities of Digi's SmartSense and Jolt's platform will create new opportunities across various verticals, including foodservice, retail, healthcare, and convenience. The integrated solution will address the growing need for intelligent, scalable, and user-friendly tools that simplify complexity across dynamic operating environments. Digi and Jolt aim to deliver deeper value, faster deployment, and greater ROI for customers.

The acquisition will be discussed during a conference call on Tuesday, August 19, 2025, at 8:30 a.m. ET (7:30 a.m. CT). Investors and financial professionals can register for the call and access a live webcast through Digi's investor relations section.

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