Digi International Inc. (Digi), a leading global provider of business and mission-critical Internet of Things (IoT) products, services, and solutions, is acquiring Particle Industries, Inc. (Particle), a leading provider of edge-to-cloud application infrastructure for intelligent devices.
According to the companies, the acquisition not only transforms the capabilities of Digi’s OEM Solution’s product offerings it also greatly enhances the recurring revenue profile of Digi’s IoT Products and Services reporting segment.
Through its subscription model, Particle enables companies to deliver customer value with easy to deploy intelligent connected products at scale.
Particle will be integrated with Digi’s OEM Solution’s offerings within Digi’s IoT Products and Services segment.
"This acquisition positions us to lead the shift toward intelligent, connected product platforms and accelerates annual recurring revenue growth for Digi," said Ron Konezny, president and CEO of Digi International. “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.”
Particle’s solution seamlessly integrates hardware, universal connectivity across a range of different protocols, application development tools, edge compute, over-the-air software, and artificial intelligence (AI)/machine learning (ML) model deployment as well as integration with existing cloud platforms, application software, and business intelligence systems.
"Joining Digi accelerates our mission to make IoT accessible and scalable for businesses of all sizes," said Zach Supalla, CEO of Particle. "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."
The purchase price of the acquisition was $50 million and was paid in cash net of Particle’s cash and debt and is otherwise subject to customary adjustments. Digi funded the purchase price by utilizing its current credit facility. Moelis & Company LLC served as the exclusive financial advisor to Particle on the transaction.
For more information about this news, visit www.digi.com.