Digi Acquires Jolt to Boost ARR and Enhance SmartSense Offerings

ByRicardo

Digi Worldwide Inc. (“Digi”) (Nasdaq: DGII), a number one international supplier of enterprise and mission-critical Web of Issues (IoT) merchandise, companies and options, right this moment introduced its acquisition of Jolt Software program, Inc., a number one options supplier to the comfort retailer and meals and beverage industries, for about $145.5 million in money, internet of Jolt’s money and in any other case topic to customary changes. The acquisition marks a big milestone for Digi’s SmartSense® enterprise in advancing operational intelligence and compliance automation throughout foodservice, grocery, comfort, healthcare and different verticals. The acquisition helps Digi’s technique to broaden annual recurring revenues (ARR) by high-value, scalable subscription choices. Jolt shall be built-in into SmartSense and can report outcomes as a part of the IoT Options section.

Digi funded the acquisition worth using its present credit score facility. In its fiscal 12 months ended January 31, 2025, Jolt generated over $20 million in ARR, with ARR development price from the prior fiscal 12 months exceeding the year-over-year development price of ARR in Digi’s current IoT Options section for its fiscal 12 months ended September 30, 2024. The transaction is anticipated to be instantly accretive to adjusted earnings per share upon closing. Digi additionally expects to generate an incremental $11 million in annualized adjusted EBITDA by synergies by the top of calendar 2026. Upon completion of the acquisition, Digi anticipates a internet debt to adjusted EBITDA leverage ratio of 1.46x.

As a part of the transaction, Jolt brings with it sure tax attributes, together with a internet working loss carryforward of roughly $30 million, topic to a Part 382 evaluation, which can present future tax advantages to Digi.

Faegre Drinker Biddle & Reath LLP served as authorized counsel to Digi in reference to the acquisition. Baird acted as monetary advisor to Jolt, whereas Wilson Sonsini Goodrich & Rosati LLP offered authorized counsel.

“This acquisition positions Digi to deepen buyer engagement, broaden our market footprint, and speed up ARR development,“ mentioned Ron Konezny, President and CEO of Digi Worldwide. “Jolt’s confirmed platform and buyer base complement SmartSense’s IoT-driven compliance and analytics capabilities. Collectively, we’re making a strategic step ahead in our mission to ship clever automation and operational excellence throughout industries.”

“This highly effective mixture redefines how our prospects handle compliance and each day operations,” mentioned Man Yehiav, President of SmartSense by Digi. “By becoming a member of forces, we’re delivering clever, scalable instruments that drive accountability, effectivity, and efficiency throughout multi-site environments. Our options empower prospects with prescriptive actions that assist them meet their crucial targets and create distinctive experiences for their very own prospects.”

Clients can anticipate SmartSense real-time monitoring, sensor expertise, and prescriptive analytics coupled with Jolt’s intuitive digital activity workflows, worker scheduling, communication instruments, and label printing and administration. Collectively, these capabilities will empower organizations to:

  • Automate compliance duties and cut back operational threat
  • Streamline each day workflows for frontline groups
  • Improve effectivity and accountability throughout multi-site operations
  • Enhance meals security, regulatory adherence, and crew efficiency
  • Dynamic label printing that empowers groups to spice up accuracy, minimize prices, and guarantee compliance

The built-in answer addresses the rising want for clever, scalable, and user-friendly instruments that simplify complexity throughout dynamic working environments. As a brand new customary in operational excellence, SmartSense and Jolt are poised to ship deeper worth, sooner deployment, and larger ROI for patrons throughout core verticals.

“By integrating our platforms, we are going to redefine operational excellence,” mentioned Josh Chicken, CEO of Jolt. “Our prospects will proceed to expertise the intuitive Jolt platform they know and belief, now amplified by SmartSense’s unmatched IoT and compliance automation experience. Collectively, we’re setting a brand new customary on efficiency, accountability, and buyer success.”

Strategic Highlights for Buyers

  • ARR Acceleration: Jolt’s subscription-based mannequin provides significant ARR and strengthens Digi’s SaaS income combine.
  • Cross-Promote Synergies: Mixed capabilities create new alternatives throughout foodservice, retail, healthcare, and comfort verticals.
  • Buyer Diversification in Options Section: Jolt’s enterprise and mid-market prospects complement SmartSense’s footprint and broaden Digi’s attain.
  • Innovation Pipeline: Integration of Jolt’s activity and workforce administration instrument with SmartSense’s IoT platform enhances product roadmap and buyer worth propositions.

Up to date Fourth Fiscal Quarter 2025 and Full-12 months Fiscal 2025 Steerage

With the mix of Jolt and Digi, our outlook for fiscal 2025 modifications. ARR is projected to develop roughly 28%, income is projected to develop roughly 1%, and Adjusted EBITDA is projected to develop 8% to 9%, in every case as in comparison with the prior fiscal 12 months. We’re updating our fourth fiscal quarter estimates:

  • Income: $108.5 million to $112.5 million
  • Adjusted EBITDA: $26.0 million to $27.5 million
  • Adjusted Internet Revenue per Diluted Share: $0.48 to $0.52 based mostly on a weighted common diluted share rely of 38.1 million shares.

As a result of debt financing related to the Jolt acquisition, we not anticipate to be internet money optimistic by the top of the fiscal 12 months.

We offer forward-looking estimates for Adjusted Internet Revenue per Diluted Share in addition to Adjusted EBITDA targets on a non-GAAP foundation. We don’t reconcile these things to their most comparable U.S. GAAP measure, as it isn’t doable to foretell with out unreasonable efforts quite a few objects that embrace however usually are not restricted to the influence of overseas change translation, restructuring, curiosity, and sure tax-related occasions. Given the uncertainty, any of these things may have a big influence on U.S. GAAP outcomes.

We’re inspired by the mix of Digi and Jolt, and we stay dedicated to scaling the enterprise by inorganic development alternatives that align strategically and contribute to ARR. Digi stays well-positioned to pursue further transactions that we consider will ship significant worth to stockholders and prospects.

Convention Name Particulars

Digi will focus on the acquisition of Jolt Software program, Inc. on a convention name on Tuesday, August 19, 2025 at roughly 8:30 a.m. ET (7:30 a.m. CT). The decision shall be hosted by Ron Konezny, President and Chief Govt Officer, and Jamie Loch, Chief Monetary Officer.

Individuals could register for the convention name at: https://register-conf.media-server.com/register/BI825b74345cf2442ea273ac614748ef0f. As soon as registration is accomplished, members shall be offered a dial in quantity and passcode to entry the decision. All members are requested to dial-in quarter-hour previous to the beginning time.

Individuals could entry a reside webcast of the convention name by the investor relations part of Digi’s web site, https://digi.gcs-web.com/ or the internet hosting web site at: https://edge.media-server.com/mmc/p/x3chtkyj/.

A replay shall be out there inside roughly two hours after the completion of the decision for about one 12 months. You might entry the replay by way of webcast by the investor relations part of Digi’s web site.

A replica of this launch could be accessed by the monetary releases web page of the investor relations part of Digi’s web site at www.digi.com.

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