Digi International Inc. Acquires Jolt Software Inc. for $145.5 Million

By Tamara Parker • Tuesday, August 19 15:37 • Permanent Link

Digi International Inc. has announced its acquisition of Jolt Software, Inc. for approximately $145.5 million in cash, net of Jolt’s cash and subject to customary adjustments. In the fiscal year ended January 31, 2025, Jolt generated over $20 million in annual recurring revenues (ARR), with a growth rate 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, and Digi also anticipates generating an incremental $11 million in annualized adjusted EBITDA through synergies by the end of calendar 2026.

With the combination of Jolt and Digi, the outlook for fiscal 2025 changes. ARR is projected to grow approximately 28%, revenue is projected to grow approximately 1%, and adjusted EBITDA is projected to grow 8% to 9%, in each case as compared to the prior fiscal year. The company is also updating its fourth fiscal quarter estimates, with revenue projected to be in the range of $108.5 million to $112.5 million, and adjusted EBITDA in the range of $26.0 million to $27.5 million.

As a result of the debt financing associated with the Jolt acquisition, Digi no longer expects to be net cash positive by the end of the fiscal year. The company is encouraged by the combination of Digi and Jolt, and it remains committed to scaling the business through inorganic growth opportunities that align strategically and contribute to ARR.

The acquisition is poised to deepen customer engagement, expand Digi's market footprint, and accelerate ARR growth. It is also expected to create new opportunities across foodservice, retail, healthcare, and convenience verticals, and to enhance the product roadmap and customer value propositions through the integration of Jolt’s task and workforce management tool with Digi’s IoT platform.

Investors can expect the acquisition to add meaningful ARR and strengthen Digi’s SaaS revenue mix, as well as to diversify the customer base in the solutions segment. Digi is set to discuss the acquisition in a conference call on August 19, 2025.

Today the company's shares have moved 5.46% to a price of $35.2862. For more information, read the company's full 8-K submission here.

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