DIGI Makes Its Third IoT Acquisition In 15 Months

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Via News Release

digi-smarttemps“MINNETONKA, Minn.,Jan. 9, 2017 — Digi International, a leading global provider of machine-to-machine (M2M) and Internet of Things (IoT) connectivity products and services, today announced that it has acquired SMART Temps, a provider of real-time foodservice temperature management for restaurant, grocery, education and hospital settings as well as real-time temperature management for pharmacy, blood bank and laboratory environments. Terms of the transaction were not disclosed.”

With its third strategic acquisition in 15 months, Digi has established itself as a clear leader in the cold chain industry with more than 10,000 locations under management. The acquired SMART Temps technology will continue to be supported, as well as leveraged within Digi’s existing products and services, to expand its advanced portfolio of products for the cold chain market.

“In addition to strengthening our leadership position in the foodservice industry, this acquisition provides Digi with a strategic entry point into the education and healthcare markets,” said Ron Konezny, president and chief executive officer, Digi International. “Our objective is to identify the best ideas and technologies across our cold chain portfolio to bring the most advanced solutions to market.”

The SMART Temps team, led by CEO John Miller, has more than 50 years of experience in bringing wireless temperature monitoring solutions to various food service environments. SMART Temps’ educational solution provides menu integration capabilities, which decreases the time it takes to perform manual temperature tasks. Mr. Miller and the SMART Temps employees will become part of the Digi Cold Chain Solutions team and will report to COO Kevin Riley.

“Our two companies together will bring industry-leading technology to market, so that our customers can be assured of the highest level of safety for their food and healthcare monitoring,” said Miller. “We are excited to be part of Digi’s growing leadership in temperature monitoring and look forward to continuing to expand our service offerings.”

Digi cold chain brands currently being marketed include: Digi Honeycomb, FreshTemp and SMART Temps.

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  • Deal Terms

    The
    terms of the acquisition included an upfront cash payment together with
    future earn-out payments and a holdback amount. Cash of $28.8 million
    was paid at time of closing. The earn-out payments are scheduled to be
    paid after December 31, 2017 which is the end of the earn-out period.
    The cumulative amount of these earn-out payments will not exceed $7.2 million.

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