Digi International has closed a deal of whopping 140 million dollars to buy Opengear to expand its market reach. Digi International is a leading Internet of Things connectivity solutions provider and is acquiring Opengear, which delivers Secure IT Infrastructure services and software to enterprises.
Digi Buys Opengear to Expand Its Market Reach
Opengear delivers Infrastructure solutions that include out-of-band management and failover-to-cellular products to a wide range of leading Fortune 100 customers. It has a wide array of services like remote management of devices over the network. The company’s solutions allow customers to securely access, control and automatically troubleshoot and repair their IT infrastructure remotely, including network and data-center management.
Deal’s Final Closure after Clearance
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
As per the reports, the transaction has been closed; however, the final closure will come after the customary conditions are favorable, and the companies duly attain the antitrust regulatory clearance.
Ron Konezny Talks about the Acquisition
Digi International’s President and CEO, Ron Konezny, conveyed to the Channel Partners that the Research and Development team at DIGI has already worked with the key professionals from Opengear in the Brisbane Office.
Channel Strategy for Acquisition
Digi acquired Accelerated some time back, and Konezny said that the company followed a similar channel process at that time. He further explained,
“The first year after the acquisition, our channel had nearly full access to both company’s products, In the second year, we had merged product offerings and now offer nearly double the products and a greatly enhanced software platform.”
He also said that both Digi and Opengear share a common passion for the network market. The companies have sufficient co-ordination to be able to combine their offerings.
Digi to Fund Deal with Debt Financing and Cash at Hand
Digi expects to close the deal through financing with cash on hand and a debt financing in place of its 150 Million dollar facility. The finance is likely to be taken by the BMO Harris Bank, as per the company.
Open Gear CEO also talks about the acquisition
Opengear CEO Gary Marks said that,
“Digi and Opengear will mesh well as we share so many of the same values in how we treat our customers and employees,”
He further added that “Our products are complementary, so customers and partners will get an exceptional choice.”
A Substantial Deal
The deal will help Digi to create a more substantial footprint in the IoT market with the increased capabilities from the acquisition of Opengear leveraging its highly efficient Infrastructure solutions.