Digi International acquires Jolt Software for $145.5 million

MINNEAPOLIS - Digi International Inc. (NASDAQ:DGII), a technology company with a market capitalization of $1.24 billion and a "GOOD" financial health rating according to InvestingPro, has acquired Jolt Software, Inc. for approximately $145.5 million in cash, the company announced Monday.

The acquisition will integrate Jolt, a provider of operations software for convenience stores and food and beverage industries, into Digi’s SmartSense business unit. The transaction is expected to be immediately accretive to adjusted earnings per share. Operating with a moderate debt-to-equity ratio of 0.08 and maintaining a healthy current ratio of 1.43, Digi appears well-positioned to manage this acquisition.

Jolt generated over $20 million in annual recurring revenue (ARR) in its fiscal year ended January 31, 2025. Digi funded the purchase through its current credit facility and expects to generate an incremental $11 million in annualized adjusted EBITDA through synergies by the end of 2026.

"This acquisition positions Digi to deepen customer engagement, expand our market footprint, and accelerate ARR growth," said Ron Konezny, President and CEO of Digi International, in the press release.

The combined offering will integrate SmartSense’s IoT monitoring and analytics capabilities with Jolt’s digital task workflows, employee scheduling, and label management tools. The acquisition includes a net operating loss carryforward of approximately $30 million that may provide future tax benefits to Digi.

Following the acquisition, Digi updated its fiscal 2025 outlook, projecting ARR growth of approximately 28%, revenue growth of approximately 1%, and adjusted EBITDA growth of 8% to 9% compared to the prior fiscal year. With a P/E ratio of 28.31 and strong free cash flow yield, InvestingPro analysis suggests the stock is currently trading near its Fair Value. Investors seeking deeper insights can access comprehensive valuation metrics and 8 additional ProTips through InvestingPro’s detailed research reports.

For the fourth fiscal quarter, Digi expects revenue between $108.5 million and $112.5 million, and adjusted EBITDA between $26.0 million and $27.5 million. The company anticipates a net debt to adjusted EBITDA leverage ratio of 1.46x upon completion of the acquisition.

Digi will discuss the acquisition on a conference call scheduled for Tuesday, August 19, 2025. For investors looking to make informed decisions about Digi International and similar technology companies, InvestingPro offers exclusive access to detailed financial analysis, including real-time Fair Value calculations and comprehensive Pro Research Reports covering over 1,400 US stocks.

In other recent news, Digi International reported better-than-expected financial results for its fiscal third quarter of 2025. The company posted earnings per share of $0.53, surpassing analysts’ projections of $0.47. Additionally, Digi International’s revenue came in at $108 million, exceeding the anticipated $106.17 million. These results highlight the company’s strong performance during the quarter. The positive earnings report led to a rise in Digi’s stock during after-hours trading. While the earnings exceeded expectations, no new mergers or acquisitions were announced. Analysts from various firms have not issued any recent upgrades or downgrades for Digi International. These developments provide investors with crucial insights into the company’s recent financial health.

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