Digi International (NASDAQ: DGII) has announced a definitive agreement to acquire Disruptive Technologies, a global leader in advanced sensing technology, for US$130 million in cash. The transaction will integrate Disruptive Technologies into SmartSense by Digi, strengthening the unit's ability to capture, interpret, and act on real-world data at enterprise scale. The deal marks SmartSense's first meaningful commercial presence in Europe and is expected to close before the end of 2026, subject to regulatory approval.
Deal Structure and Financial Impact
Digi International, a global IoT connectivity products and solutions provider based in Hopkins, Minnesota, will finance the US$130 million acquisition using its existing revolving credit facility. Disruptive Technologies generated US$15 million in revenue and US$4 million in annualized recurring revenue during calendar 2025. The combined operation is expected to contribute approximately US$9 million in additional adjusted EBITDA and free cash flow in fiscal year 2028.
Strategic Rationale
SmartSense by Digi operates around a Sense, Understand, and Act framework that captures physical signals, applies AI and analytics, and recommends the best next action through generative AI and digital workflows. Adding Disruptive Technologies strengthens the Sense layer, providing a trusted ground-truth data foundation for enterprise AI. This acquisition positions Digi to lead the emerging category of physical world intelligence.
Technology and Market Expansion
Disruptive Technologies brings proprietary edge sensor technology with more than 250,000 sensors already deployed worldwide. Its sensors are smaller than a postage stamp, support a wider range of monitoring conditions, and operate for up to 15 years, significantly longer than many competing products. The added sensing breadth supports SmartSense's existing food and health markets while opening opportunities in building automation and occupancy.
Leadership Perspective
Digi International Chief Executive Officer Ron Konezny said the combination will help enterprises sense physical operations efficiently at greater scale. Guy Yehiav, President and Senior Vice President of SmartSense by Digi, described the deal as building an integrated physical-world intelligence platform with differentiated sensing, AI, and workflows. Erik Fossum Faerevaag, Chief Executive Officer of Disruptive Technologies, said SmartSense's market scale and execution will turn sensing technology into measurable customer value.
European Expansion and Customer Base
The acquisition establishes SmartSense's first meaningful commercial presence in Europe, built on Disruptive Technologies' established customer relationships and infrastructure across more than 25 countries worldwide. This footprint enables multinational customers to standardize on a consistent IoT monitoring platform across regions. It also extends SmartSense's reach beyond its existing food and health markets into new industrial and commercial environments.
Conference Call Information
Digi International will host a conference call on Thursday, October 1, 2026, at approximately 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss the acquisition. Chief Executive Officer Ron Konezny and Chief Financial Officer Jamie Loch will lead the call, with registration available through Digi's investor relations website. A live webcast and replay will also be accessible for approximately one year after the event.
Digi International's planned acquisition of Disruptive Technologies represents a strategic move to strengthen its IoT sensing and analytics capabilities as physical world data becomes critical for enterprise AI. The transaction adds proven edge sensor technology, expands the company into Europe, and creates a more complete platform for sensing, understanding, and acting on operational data. With closing expected before the end of 2026, the deal is positioned to deliver long-term value through scale, market expansion, and stronger financial performance.