Digi International announced the acquisition of Connecticut-based Ventus Holdings, a provider of Managed Network-as-a-Service (MNaaS) solutions that simplify the complexity of enterprise wide area network (WAN) connectivity.
The acquisition, the largest in Digi’s 36-year history, will enable the company to offer software and subscription service plans as well as award-winning hardware, further strengthening its position as a provider of comprehensive network solutions and of great value.
During its 20 years of activity, Ventus has grown into an industry leader in innovative, secure and market-driven enterprise networks. Ventus’ portfolio includes wireless and fixed cellular WAN solutions for a range of connectivity applications in banking, healthcare, retail, gaming, hospitality and other industries.
Supporting ATMs, gaming, point-of-sale, kiosks, digital signage and retail applications, Ventus works closely with its major customers to customize innovative MNaaS solutions. Ventus combines impeccable security, relentless uptime, and responsive expert support to help businesses streamline networking processes and increase IT resources.
Digi acquired Ventus for $ 347.4 million in cash, which is just over eight times annualized recurring revenue. To finance the purchase, Digi secured a $ 350 million credit facility through existing lender BMO Harris Bank NA and its affiliates. Stephens Inc. acted as financial advisor to Digi on the acquisition and provided a fairness opinion. Faegre Drinker Biddle & Reath LLP acted as legal counsel to Digi on both the Acquisition and the Credit Facility. Rothschild & Co served as financial advisor and Mayer Brown LLP served as legal advisor to Ventus on the acquisition.
Digi expects the acquisition to be immediately accretive for its non-GAAP measures of Adjusted EBITDA and Adjusted EPS. Due to interest expense on the GAAP-based credit facility, the acquisition is expected to be slightly non-accretive to net income and EPS in fiscal 2023. Digi plans to report on Ventus’ performance in the financial year. part of its IoT Solutions segment.
âOur primary goal is to simplify the deployment and management of sophisticated and distributed enterprise networks,â said Ron Konezny, President and CEO of Digi International. âOur acquisition of Ventus is based on our unique understanding of the evolving connectivity needs and challenges facing businesses today, from the large geographic footprints to the large number of dynamic and intelligent devices. We are proud to renew our commitment to reducing the complexities of network connectivity and endpoints, as well as simplifying the creation, hosting, deployment, monitoring and maintenance of secure and uninterrupted WANs.
âJoining a trusted industry leader like Digi presents huge opportunities for our combined teams to collaborate on more innovative network solutions,â said Steve Glaser, who will move from COO of Ventus to CEO of Ventus under the leadership of. owned by Digi. âCollectively, our world-class hardware and software solutions, network expertise, engineering talents and exceptional customer support will create significant value and innovation for businesses around the world. “