Digi International has purchased substantially all of the assets of the US, India and Singapore affiliates of MobiApps, a developer of machine-to-machine (M2M) communications technology focusing on hybrid satellite and cellular solutions.
The transaction satisfies two target areas in Digi’s acquisition strategy by providing M2M satellite products and technologies, and a base of operations to grow Digi’s wireless solutions business in India and Southeast Asia.
Joe Dunsmore, chairman, president and CEO of Digi, said: Our wireless M2M customers are asking for satellite as a communications option to complete their coverage model. We’re looking forward to moving MobiApps products into Digi’s strong global sales and distribution network. We believe satellite M2M will be a growth opportunity for the foreseeable future.
Taroon Kamdar, CEO of MobiApps said: With the resources, scale and market presence of Digi now underpinning MobiApps’ technology, it will be in a position to take advantage of the growth opportunities that M2M markets offer around the world.
Digi paid $3m in cash and would pay an additional $0.5m at the end of fiscal 2010, based on certain performance results.
Digi expects MobiApps to contribute in excess of $0.35 million in revenue for fiscal 2009, from date of acquisition. The company expects the acquisition to be breakeven if all financial targets are reached in fiscal 2010.
Digi International provides wireless M2M products and solutions to connect and securely manage local or remote electronic devices over the network or via the web. Digi markets its products through a global network of distributors and resellers, systems integrators and original equipment manufacturers (OEMs).
