Digi International (DGII.Q), a provider of internet of things (IoT) connectivity products, software and devices, has acquired Opengear, a secure IT infrastructure product provider on Friday, December 13.
Opengear delivers secure access and automation to critical IT infrastructure, even when the network is down. That’s the interesting thing. When most networks lose power there’s going to be some lack of accessibility. A bank can’t lose its camera feeds because the city power grid is offline. An out of band network provides an alternative pathway to the devices when they get disconnected. Think of it like a backup. Your power source goes out and your generator kicks in. Everyone’s happy.
Here’s a short video on Out of Band management.
Digi International produces IoT connectivity products, like routers, microchips and radios, helping their clients manage and monitor their communications infrastructure and compliance standards, security and performance. The company has a full line of radio modems and embedded modules based on current LTE (4G) communications platforms. The company has been around since Coca Cola introduced New Coke and Gorbachev and Reagan were staring each other down, so this isn’t a company that makes rash decisions.
Here’s their acquisition history for the past five years, including the latest:
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2019 Digi acquired Opengear, a provider of smart out-of-band infrastructure management products.
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2018 Digi acquired Accelerated, a provider of secure, enterprise-grade, cellular (LTE) networking equipment for primary and backup connectivity applications.
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2017 Digi acquired TempAlert, a provider of temperature and task management for retail pharmacy, food service, and industrial applications
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2017 Digi acquired SMART Temps, LLC, a provider of real-time food service temperature management for restaurant, grocery, education and hospital settings as well as real-time temperature management for healthcare.
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2016 Digi acquired FreshTemps, a provider of temperature monitoring and task management solutions for the food industry. The technology will be leveraged within Digi’s Honeycomb solution.
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2015 Digi acquired Bluenica, a Toronto-based cold chain solutions provider
It also doesn’t hurt Opengear’s case that they service 75 of the top Fortune 100 companies, including Apple, Comcast. Microsoft and Oracle, and pull in a regular revenue of $41.9 million, which will add substantially to Digi’s annual revenue of over $251 million. Opengear is stationed in Edison, New Jersey, but with research and development centers operating out of Silicon Valley and Brisbane, Australia, and an additional office in Sandy, Utah.
“Joining forces with Opengear gives customers an expansive, high-value, technology portfolio that is hardware enabled and software defined. Both companies have a deep commitment to our customers and will continue to invest in product development to deliver business- and mission-critical solutions,” said Ron Konezny, president and CEO of Digi International.
The IoT company is expected to keep its existing office locations and any future office consolidations, if any are required, will be designed to ease existing employees and customers into new management and practices. The previously announced agreement included $140 million changing hands up front with a potential for an addition $15 million on revenue performance through 2020. Financing the deal will involve a combination of cash on hand and debt financing under a $150 million facility that BMO Harris Bank has committed to provide to Digi.
—Joseph Morton