Digi Acquires Spectrum Design Solutions Inc., a Leading Wireless Design Services Firm
Monday, Jul 28, 2008
MINNETONKA, Minn., July 25 /Xinhua-PRNewswire/ -- Digi International(R) Inc. (NASDAQ:DGII) today announced the acquisition of Spectrum Design Solutions Inc., a privately held Minneapolis based corporation and a leading wireless design services organization. The acquisition is a cash merger, with $4.0 million payable at the acquisition date and $3.0 million to be paid at each of the eighteenth and thirty-six months following acquisition.
Spectrum Design Solutions Inc. is a design services company with a focus on solving customer's wireless development challenges. Employing over 30 highly specialized engineers with extensive experience in wireless technologies such as GSM, CDMA, GPS, WiMAX, Wi-Fi and proprietary RF allows the organization to address virtually any wireless development need.
"Wireless design services are another piece of the puzzle we're adding to our wireless Drop-in Networking product offering," said Joe Dunsmore, Chairman, President and CEO of Digi. "Spectrum provides tremendous value to customers with complex wireless integration requirements. As we've had several joint customers, we've seen their capabilities and their corporate culture firsthand and know they're a great fit with Digi."
"With the cultural similarities and being a proven leader in wireless technology we see Digi as the ideal partner to take our fast growing services business and leverage it with more potential customers," said Rod Landers, CEO of Spectrum. "Digi's market-leading Drop-in Networking technology and our extensive wireless design expertise creates a powerful combination."
Digi anticipates that Spectrum will contribute approximately $0.6 million in revenue for the fourth fiscal quarter of 2008, from date of acquisition, and in a range of approximately $5.0 to $5.5 million in revenue for fiscal year 2009.
Digi expects that the acquisition of Spectrum will reduce earnings per diluted share by $0.01 to $0.02 in the fourth fiscal quarter of 2008. Digi anticipates that Spectrum will be accretive to earnings per diluted share by $.01 to $0.02 in fiscal 2009.
Pursuant to the terms of the purchase agreement, Spectrum became a wholly owned subsidiary of Digi International Inc. Digi will retain the Spectrum offices located in downtown Minneapolis.
About Digi International
Digi International, the leader in device networking for business, develops reliable products and technologies to connect and securely manage local or remote electronic devices over the network or via the web. Digi offers the highest levels of performance, flexibility and quality, and markets its products through a global network of distributors and resellers, systems integrators and original equipment manufacturers (OEMs). For more information visit http://www.digi.com/ .
Source: PR Newswire