Digi International Agrees to Buy Disruptive Technologies for $130 Million

Digi International has signed a definitive agreement to acquire Disruptive Technologies for $130 million in cash, adding the Norwegian sensor maker to its SmartSense business and giving that unit a larger commercial footprint in Europe.

The purchase will be financed through Digi’s existing revolving credit facility. Closing is expected before the end of 2026 and remains subject to regulatory approval. Disruptive Technologies generated $15 million in revenue and $4 million in annualized recurring revenue, or ARR, in calendar 2025.

In its acquisition announcement, Digi said Disruptive Technologies has more than 250,000 sensors deployed and serves customers through infrastructure spanning more than 25 countries. Digi expects the acquired business to contribute approximately $9 million of additional fiscal 2028 adjusted EBITDA and free cash flow. That figure is a management forecast rather than a reported result.

Disruptive Technologies adds a sensing layer to SmartSense

Disruptive Technologies was founded in Norway by semiconductor specialists focused on low-power sensing. Its product line includes wireless sensors for temperature, humidity, occupancy, water, motion, door and window status, carbon dioxide and other physical conditions. The devices are designed for rapid installation and, depending on the model and operating conditions, can run for up to 15 years on their built-in batteries.

Those capabilities fit directly into SmartSense, Digi’s monitoring and digital-decisioning business. SmartSense already serves industries such as food, healthcare and retail, where temperature, equipment status and other physical conditions can be tied to compliance or operating workflows. Digi says the acquisition should also expand SmartSense into areas including building automation and occupancy monitoring.

Geography is another part of the rationale. Digi described the purchase as establishing SmartSense’s first meaningful commercial presence in Europe. Disruptive Technologies is headquartered in Lysaker, Norway, with additional locations in Trondheim and London as well as a U.S. headquarters in Atlanta. The target’s existing European customer relationships give SmartSense a base from which Digi expects to sell a broader monitoring platform across regions.

The disclosed purchase price also puts the target’s current scale into perspective. Based on the figures supplied by Digi, $130 million is about 8.7 times Disruptive Technologies’ 2025 revenue and 32.5 times its 2025 ARR. Those simple multiples do not account for future growth, margins or expected cost and revenue benefits, but they show that Digi is paying for capabilities and market access beyond the target’s present recurring-revenue base.

Revolver will fund the $130 million purchase

Digi’s choice to use debt financing follows an expansion of its borrowing capacity in August. An SEC filing on the amended credit agreement shows that Digi increased its senior secured revolving facility to $350 million from $250 million. The facility matures in August 2031 and may be used for permitted acquisitions, related fees and general corporate purposes.

The credit agreement also contains an uncommitted accordion feature that can provide additional borrowing capacity, subject to its terms and leverage conditions. Digi’s acquisition release did not specify how much of the revolver will be drawn at closing beyond stating that the $130 million cash purchase price will be financed through the existing facility.

Digi entered the deal after a strong fiscal third quarter. For the quarter ended June 30, the company reported $139 million in revenue, $40 million in adjusted EBITDA, $191 million in ARR and $33 million of cash flow from operations. It had $109 million of outstanding debt and $28 million of cash and cash equivalents at quarter-end, leaving debt net of cash of $81 million.

Those results also show why the financing choice matters. Digi had told investors in August that it intended to continue reducing leverage, while also identifying acquisitions as a top capital priority. Funding Disruptive Technologies through the revolver adds another large cash purchase to that strategy. The ultimate balance-sheet effect will depend on borrowings outstanding around closing and subsequent cash generation, neither of which Digi quantified in Thursday’s announcement.

The purchase extends Digi’s acquisition-led expansion

Disruptive Technologies is the latest in a series of purchases aimed at increasing recurring revenue and adding software or connected-device capabilities. In August 2025, Digi bought Jolt Software for approximately $145.5 million in cash. Jolt was folded into SmartSense and expanded its presence in convenience stores and food-service operations.

Digi followed in January 2026 with the $50 million cash acquisition of Particle Industries, an edge-to-cloud application infrastructure provider that was generating about $20 million of ARR at the time. Particle joined Digi’s IoT Products & Services business rather than SmartSense, but the purchase reflected the same broader push toward recurring-revenue products and services around connected devices.

The new acquisition is more directly focused on SmartSense’s ability to collect physical-world data. Digi describes the business around a sequence of sensing conditions, interpreting the data with analytics and AI, and then connecting those results to operating workflows. Disruptive Technologies supplies the first part of that process through its compact sensors and wireless infrastructure.

Digi has not said that Disruptive Technologies will materially change its fiscal 2026 guidance, and the acquisition is not yet closed. The immediate milestones are regulatory clearance and completion before year-end. If those conditions are met, Disruptive Technologies will join SmartSense, after which Digi’s stated fiscal 2028 contribution target will become one measure of whether the $130 million purchase delivers the financial returns management expects.