Digi International announced on August 18, 2025, its acquisition of Jolt Software, Inc., a solutions provider to the convenience store and food and beverage industries, for approximately $145.5 million in cash. This acquisition marks a significant milestone for Digi’s SmartSense business, aiming to advance operational intelligence and compliance automation.
Jolt generated over $20 million in Annualized Recurring Revenue (ARR) in its fiscal year ended January 31, 2025, with an ARR growth rate exceeding that of Digi’s existing IoT Solutions segment. The transaction is expected to be immediately accretive to adjusted earnings per share upon closing, and Digi anticipates generating an incremental $11 million in annualized adjusted EBITDA through synergies by the end of calendar 2026.
The acquisition was funded utilizing Digi’s current credit facility, resulting in a projected net debt to adjusted EBITDA leverage ratio of 1.46x post-acquisition. Jolt also brings approximately $30 million in net operating loss carryforward, which may provide future tax benefits to Digi.
Following the acquisition, Digi updated its fiscal year 2025 guidance. ARR is now projected to grow approximately 28% year-over-year, up from the previous 10% projection. Revenue is projected to grow approximately 1% year-over-year, and Adjusted EBITDA is projected to grow 8-9% year-over-year. Due to the debt financing, Digi no longer expects to be net cash positive by the end of the fiscal year.
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