Digi International, a provider of mission-critical Internet of Things connectivity products and services, said it has acquired Particle Industries, an edge-to-cloud application infrastructure provider for intelligent devices, in a move that Digi expects will accelerate annual recurring revenue growth and strengthen its embedded-as-a-service offering.
Digi said Particle will be integrated into Digi’s OEM Solutions offerings within the company’s IoT Products and Services segment. Particle currently generates about $20 million in annual recurring revenue through a subscription model and is growing ARR at a double-digit rate annually, according to the announcement. Digi reported $32 million in ARR for its IoT Products and Services segment as of the end of the fiscal quarter ended September 30, 2025.
Financially, Digi said the purchase price was $50 million, paid in cash net of Particle’s cash and debt and subject to customary adjustments, and funded through Digi’s current credit facility. Moelis & Company LLC served as the exclusive financial advisor to Particle.
Digi positioned the transaction as an immediate boost to recurring revenue, noting that Particle’s subscription model increases ARR for Digi’s IoT Products and Solutions segment by more than 60% while also creating cross-sell opportunities through Digi’s global sales teams and channel relationships. The company also highlighted Particle’s capabilities in edge computing, over-the-air software, and AI and machine learning model deployment as areas that can deepen Digi’s product roadmap across cellular IoT and edge AI.
Particle’s platform combines hardware, connectivity across multiple protocols, application development tools, edge computing, and integrations with cloud platforms, application software, and business intelligence systems. Digi said Particle enables developers to transmit device data across networks with minimal effort and offers cellular connectivity that automatically selects from more than 350 global cellular networks, without customers having to manage separate carrier contracts or SIM agreements. Particle launched in 2014 and has been used by more than 250,000 developers, Digi said.
Digi cited use cases including remote well monitoring in oil and gas that increased production and reduced service trips, water heater retrofits that support grid-interactive storage and virtual power plant capacity, methane detection systems that cut emissions compared with conventional approaches, and connected spa products that improved retail margins.
Digi plans to provide updated guidance, including the impact of the acquisition, alongside first fiscal quarter earnings on February 4, 2026.
KEY QUOTES
“This acquisition positions us to lead the shift toward intelligent, connected product platforms and accelerates annual recurring revenue growth for Digi.”
“By combining Particle and Digi, we now deliver embedded-as-a-service for customers at scale. Together we remove the complexity businesses encounter when embedding connectivity and intelligence for actionable operational insights to drive better business outcomes and efficiencies from edge to cloud.”
Ron Konezny, President and CEO of Digi International
“Joining Digi accelerates our mission to make IoT accessible and scalable for businesses of all sizes. Our customers gain the dependability and global scale Digi has been delivering for more than 40 years combined with the innovation, ease-of-use, and developer friendliness that has been Particle’s mainstay for the last decade. It’s a great match, and together we’re set up to accelerate growth and build the next generation of smart, connected products together with our customers.”
Zach Supalla, CEO of Particle
“Combining Digi and Particle enables our customers to ship software to hardware at scale. With Particle, we are bringing our Digi ConnectCore modules and Digi XBee wireless solutions and Particle’s multi-radio capabilities, proven application infrastructure, and edge AI capabilities together. This combination delivers unique value in the industry, giving our customers everything they need to build, deploy, and manage connected products at scale, with better visibility into product performance and more efficient operations.”
Steve Ericson, President of Digi’s OEM Solutions Business Unit
