Digi International has acquired Jolt Software, a solutions’ provider to the convenience store and food and beverage industries, for approximately $145.5 million in cash, net of Jolt’s cash.

The acquisition supports Digi’s SmartSense business in advancing operational intelligence and compliance automation across food service, grocery, convenience, healthcare and other verticals. It also supports Digi’s strategy to expand annual recurring revenues (ARR) through high-value, scalable subscription offerings.

Jolt will be integrated into SmartSense and will report results as part of the IoT Solutions segment.

Digi funded the purchase price utilising its current credit facility. In its fiscal year ended January 31, 2025, Jolt generated over $20 million in ARR, with ARR growth rate from the prior fiscal year exceeding the year-over-year growth rate of ARR in Digi’s existing IoT Solutions segment for its fiscal year ended September 30, 2024. The transaction is expected to be immediately accretive to adjusted earnings per share upon closing.

Digi also expects to generate an incremental $11 million in annualised adjusted EBITDA through synergies by the end of calendar 2026. Upon completion of the acquisition, Digi anticipates a net debt to adjusted EBITDA leverage ratio of 1.46x.

As part of the transaction, Jolt brings with it certain tax attributes, including a net operating loss carry-forward of approximately $30 million, subject to a Section 382 analysis, which may provide future tax benefits to Digi.

“This acquisition positions Digi to deepen customer engagement, expand our market footprint, and accelerate ARR growth,“ said Ron Konezny, President and CEO of Digi International. “Jolt’s proven platform and customer base complement SmartSense’s IoT-driven compliance and analytics capabilities. Together, we’re making a strategic step forward in our mission to deliver intelligent automation and operational excellence across industries.”

“This powerful combination redefines how our customers manage compliance and daily operations,” said Guy Yehiav, President of SmartSense by Digi. “By joining forces, we’re delivering intelligent, scalable tools that drive accountability, efficiency, and performance across multi-site environments. Our solutions empower customers with prescriptive actions that help them meet their critical objectives and create exceptional experiences for their own customers.”

SmartSense real-time monitoring, sensor technology, and prescriptive analytics will be coupled with Jolt’s digital task workflows, employee scheduling, communication tools, and label printing and management. According to Digi, these capabilities will enable organisations to:

• Automate compliance tasks and reduce operational risk
• Streamline daily workflows for frontline teams
• Increase efficiency and accountability across multi-site operations
• Improve food safety, regulatory adherence, and team performance
• Dynamic label printing that empowers teams to boost accuracy, cut costs, and ensure compliance

The integrated solution addresses a growing need for intelligent, scalable, and user-friendly tools to simplify complexity across dynamic operating environments. As a new standard in operational excellence, SmartSense and Jolt are poised to deliver deeper value, faster deployment, and greater ROI for customers across core verticals.

“By integrating our platforms, we will redefine operational excellence,” said Josh Bird, CEO of Jolt. “Our customers will continue to experience the intuitive Jolt platform they know and trust, now amplified by SmartSense’s unmatched IoT and compliance automation expertise. Together, we’re setting a new standard on performance, accountability, and customer success.”