Digi International Inc. (“Digi”) (Nasdaq: DGII), a leading global provider of business and mission-critical Internet of Things (IoT) products, services and solutions, today announced its acquisition of Particle Industries, Inc. (“Particle”), a leading provider of edge-to-cloud application infrastructure for intelligent devices. Through their subscription model, Particle enables companies to deliver customer value with easy to deploy intelligent connected products at scale. The acquisition not only transforms the capabilities of Digi’s OEM Solution’s product offerings; it also greatly enhances the recurring revenue profile of Digi’s IoT Products and Services reporting segment.
Particle will be integrated with Digi’s OEM Solution’s offerings within Digi’s IoT Products and Services segment. Particle presently generates approximately $20 million in ARR via its subscription-based sales model and is growing ARR double-digits annually. This greatly advances Digi’s strategy to expand Annual Recurring Revenue (ARR). Digi’s IoT Products and Services segment reported $32 million in ARR as of the end of the fiscal quarter ended September 30, 2025.
“This acquisition positions us to lead the shift toward intelligent, connected product platforms and accelerates annual recurring revenue growth for Digi,” said Ron Konezny, President and CEO of Digi International. “By combining Particle and Digi, we now deliver embedded-as-a-service for customers at scale. Together we remove the complexity businesses encounter when embedding connectivity and intelligence for actionable operational insights to drive better business outcomes and efficiencies from edge to cloud.”
“Joining Digi accelerates our mission to make IoT accessible and scalable for businesses of all sizes,” said Zach Supalla, CEO of Particle. “Our customers gain the dependability and global scale Digi has been delivering for more than 40 years combined with the innovation, ease-of-use, and developer friendliness that has been Particle’s mainstay for the last decade. It’s a great match, and together we’re set up to accelerate growth and build the next generation of smart, connected products together with our customers.”
Particle’s solution seamlessly integrates hardware, universal connectivity across a range of different protocols, application development tools, edge compute, over-the-air software, and artificial intelligence (AI)/machine learning (ML) model deployment as well as integration with existing cloud platforms, application software, and business intelligence systems. Developers write a single line of code to send data across any network, including cellular connectivity that automatically selects the best carrier across 350+ global cellular networks without requiring customers to manage contracts or SIMs separately. Since its initial launch in 2014, more than 250,000 developers have used Particle to design, develop, and deploy intelligent devices.
Some examples of how this highly flexible solution architecture drives meaningful business outcomes for customers across a wide range of industries include:
- An oil and gas customer monitors remote wells, delivering a 40% production increase and a 70% reduction in service trips through predictive maintenance.
- An energy company retrofits water heaters into grid-interactive storage with 40% ROI and 50% cost savings while providing virtual power plant capacity.
- An emissions monitoring providerdelivers methane detection systems to reduce methane emissions by 80% versus conventional solutions.
- A spa manufacturer offers new connected spa products that offer customers better services and delivers a 6% retail margin lift.
“Combining Digi and Particle enables our customers to ship software to hardware at scale,” said Steve Ericson, President of Digi’s OEM Solutions Business Unit. “With Particle, we are bringing our Digi ConnectCore modules and Digi XBee wireless solutions and Particle’s multi-radio capabilities, proven application infrastructure, and edge AI capabilities together. This combination delivers unique value in the industry, giving our customers everything they need to build, deploy, and manage connected products at scale, with better visibility into product performance and more efficient operations.”
Strategic Highlights for Investors
The purchase price of the acquisition was $50 million and was paid in cash net of Particle’s cash and debt and is otherwise subject to customary adjustments. Digi funded the purchase price by utilizing its current credit facility. Moelis & Company LLC served as the exclusive financial advisor to Particle on the transaction.
- ARR Growth: Particle’s application infrastructure and subscription model, which is growing double-digits, increases ARR for Digi’s IoT Product and Solutions segment by over 60% and drives new solution-sell opportunities across industries.
- Cross-Sell Synergies: Combined capabilities complement each other and drive new opportunities as Particle’s solutions offerings can now leverage Digi’s global sales teams and channel relationships.
- Product Innovation: Particle strengthens and accelerates Digi’s global position in edge AI, edge compute, cellular IoT, and differentiated product solutions and services.
Updated Full-Year Fiscal 2026 Guidance to Come
We intend to provide updated annual guidance for our second fiscal quarter and updated annual fiscal 2026 guidance, which will include the impact of this acquisition when we announce first fiscal quarter earnings on February 4, 2026.
A copy of this release can be accessed through the financial releases page of the investor relations section of Digi’s website at www.digi.com.
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