Digi International® Inc., (NASDAQ: DGII), a Hopkins, MN-based provider of Internet of Things (IoT) connectivity products, software and services, is to acquire Opengear, Inc., an Edison, New Jersey-based provider of secure IT infrastructure products and software, for up to $155m.
The amount included upfront cash of approximately $140 million with a potential for contingent consideration of up to an additional $15 million based on revenue performance through 2020. The closing of the transaction is subject to customary conditions, including antitrust regulatory clearance.
To finance the purchase, Digi expects to use a combination of cash on hand and debt financing under a $150 million facility that BMO Harris Bank N.A. has committed to provide to Digi.
Founded in 2004 and led by CEO Gary Marks, Opengear delivers critical IT infrastructure, including failover-to-cellular and out-of-band management solutions, to a broad range of Fortune 100 and other customers. Its provisioning, orchestration and remote management of network devices, through innovative software and appliances, enables technical staff to manage their data centers and remote network locations. Opengear is headquartered in Edison, New Jersey, with R&D centers in Silicon Valley and Brisbane, Australia, with an additional office in Sandy, Utah.
Founded in 1985 and led by Ron Konezny, President and CEO, Digi International provides customers with Internet of Things (IoT) connectivity products and solutions to create next-generation connected products and solutions to deploy, monitor and manage critical communications infrastructures and compliance standards in demanding environments.