Digi Expanding Market Reach, Technology with Opengear Acquisition

Digi International, a provider of IoT connectivity solutions, is shelling out $140 million to acquire Opengear, a provider of secure IT infrastructure products and software.

Opengear delivers IT infrastructure, including failover-to-cellular and out-of-band management solutions, to a broad range of Fortune 100 and other customers. Its provisioning, orchestration and remote management of network devices allows technical staff to manage their data centers and remote network locations.

The closing of the Digi-Opengear transaction is subject to customary conditions, including antitrust regulatory clearance.

Digi’s Ron Konezny

Ron Konezny, Digi‘s president and CEO, tells Channel Partners that Digi’s R&D team had previously worked with key individuals from Opengear in his company’s Brisbane, Australia, office.

“We both share a passion for the IT network market and there were enough synergies in our combined offering to make a strong business case for the acquisition,” he said. “We will be reviewing our channel strategy with existing partners with the intent of growing our business with the combined line of Opengear and Digi products.”

In terms of channel, Digi went through a similar process when it acquired Accelerated a few years ago, Konezny said.

“The first year after the acquisition, our channel had nearly full access to both company’s products,” he said. “In the second year, we had merged product offerings and now offer nearly double the products and a greatly enhanced software platform.”

Opengear is headquartered in Edison, New Jersey, with R&D centers in Silicon Valley and Brisbane, and with an additional office in Sandy, Utah. Opengear is expected to retain its existing office locations and future office consolidations, if any, will be designed to minimize disruption to employees and customers, according to Digi.

To finance the purchase, Digi expects to use a combination of cash on hand and debt financing under a $150 million facility that BMO Harris Bank N.A. has committed to provide, according to the company.

“Digi and Opengear will mesh well as we share so many of the same values in how we treat our customers and employees,” said Gary Marks, Opengear’s CEO. “Our products are complementary, so customers and partners will get exceptional choice.”