Digi International, a global leader in Internet of Things (IoT) products and solutions, has acquired Jolt Software, a prominent provider in the convenience store and food and beverage sectors, for approximately $145.5 million in cash.
This acquisition will significantly advance Digi’s SmartSense® business, enhancing operational intelligence and compliance automation across foodservice, grocery, and healthcare industries, while supporting Digi’s goal of increasing annual recurring revenues (ARR) through scalable subscription offerings.
Jolt, which generated over $20 million in ARR in its fiscal year ending January 31, 2025, will be integrated into SmartSense and is expected to contribute an incremental $11 million in annual adjusted EBITDA through savings by the end of 2026. Following the acquisition, Digi anticipates a net debt-to-adjusted EBITDA leverage ratio of 1.46x.
Jolt brings valuable tax attributes, including a $30 million net operating loss carryforward, which could potentially provide future tax benefits for Digi. Customers can expect enhanced solutions that integrate SmartSense’s real-time monitoring and analytics with Jolt’s task workflows, employee scheduling, and label management tools.
With this acquisition, ARR is projected to grow by 28%, revenue by 1%, and Adjusted EBITDA by 8% to 9%. Updated estimates for the fourth fiscal quarter are as follows: revenue, $108.5 million to $112.5 million; adjusted EBITDA, $26 million to $27.5 million; and adjusted net income per share, $0.48 to $0.52.
Due to the debt financing for the Jolt acquisition, we do not expect to be net cash positive by the end of the fiscal year. Despite the challenges, we remain committed to pursuing additional strategic opportunities that will create value for our stockholders and customers.
Advisors/counsel: Faegre Drinker Biddle & Reath served as legal counsel to Digi in connection with the acquisition. Baird acted as financial advisor to Jolt, while Wilson Sonsini Goodrich & Rosati provided legal counsel.
KEY QUOTES:
“This acquisition positions Digi to deepen customer engagement, expand our market footprint, and accelerate ARR growth. Jolt’s proven platform and customer base complement SmartSense’s IoT-driven compliance and analytics capabilities. Together, we’re making a strategic step forward in our mission to deliver intelligent automation and operational excellence across industries.”
Ron Konezny, President and CEO of Digi International
“This powerful combination redefines how our customers manage compliance and daily operations. By joining forces, we’re delivering intelligent, scalable tools that drive accountability, efficiency, and performance across multi-site environments. Our solutions empower customers with prescriptive actions that help them meet their critical objectives and create exceptional experiences for their own customers.”
Guy Yehiav, President of SmartSense by Digi
“By integrating our platforms, we will redefine operational excellence. Our customers will continue to experience the intuitive Jolt platform they know and trust, now amplified by SmartSense’s unmatched IoT and compliance automation expertise. Together, we’re setting a new standard on performance, accountability, and customer success.”
Josh Bird, CEO of Jolt
