Acquisition

Digi to buy sensor maker Disruptive Technologies for $130M

What's the deal? Digi International has agreed to acquire Disruptive Technologies, a sensing technology company, for $130 million in cash. The target will join SmartSense by DigiDealroom has a profile for this one. Try Dealroom →, the acquirer's monitoring platform. Digi is financing the deal through its existing revolving credit facility.

What each side brings: Digi International is a global IoT connectivity company listed on the Nasdaq. Disruptive Technologies makes edge sensors smaller than a postage stamp that run for up to 15 years, with over 250,000 deployed. In calendar 2025, it generated $15 million in revenue and $4 million in annualized recurring revenue.

What's the endgame? SmartSense is built around three layers — Sense, Understand and Act — capturing physical signals, interpreting them with AI, and recommending next steps. Digi says the deal strengthens the Sense layer.

Why now? The acquisition gives SmartSense its first meaningful commercial presence in Europe, built on Disruptive Technologies' customer relationships across more than 25 countries. That lets multinational customers standardize on one monitoring platform across regions.

The deal also opens new markets in building automation and occupancy, alongside SmartSense's existing food and health markets. Digi expects it to add about $9 million in adjusted EBITDA and free cash flow in FY28.

What could go wrong? Closing is subject to regulatory approval and is expected before the end of 2026.

"Physical world intelligence is a foundational layer for enterprise AI, and this acquisition positions Digi to lead that category," said Ron Konezny, chief executive officer of Digi International.

Erik Fossum Faerevaag, chief executive officer of Disruptive Technologies, said SmartSense offered "market scale and reliable execution that will turn our sensing technology into measurable value for customers."

The signal: As enterprises push AI deeper into physical operations, companies are racing to own the sensor layer that feeds those systems reliable data. Digi's bet is that trusted ground-truth sensing becomes the foundation for enterprise AI.

Read more: marketscreener.com

Image credit: infomatique

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