Digi International stock targets Europe with a USD 130 million deal

Published on 10/08/2026 at 00:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Digi International stock posted fiscal Q3 revenue of USD 139 million, up 29 percent year over year. The company also raised its growth profile through a USD 130 million sensor deal.

DGII, US2537981027, Illustration mit AI erstellt.

Digi International (ISIN US2537981027) agreed to acquire Disruptive Technologies for USD 130 million in cash on October 1, 2026, expanding SmartSense into Europe. The deal adds more than 250,000 deployed sensors and gives Digi a defined integration test as it builds recurring IoT revenue.

USD 130 million expands SmartSense

According to Digi International on October 1, 2026, Disruptive Technologies generated USD 15 million in calendar 2025 revenue and USD 4 million in annualized recurring revenue.

The target operates across more than 25 countries, while the transaction is financed through Digi's existing revolving credit facility and remains subject to regulatory approval before the end of 2026. The acquisition therefore combines geographic expansion with additional financing exposure.

Fiscal Q3 shows operating leverage

In its fiscal third-quarter report dated August 5, 2026, Digi International reported revenue of USD 139 million, up 29 percent from the prior-year quarter. GAAP net income reached USD 16 million, up 54 percent, while annualized recurring revenue rose 52 percent to USD 191 million.

The same release set fiscal 2026 revenue guidance at USD 529 million to USD 533 million, representing 23 to 24 percent growth, and forecast adjusted EPS of USD 2.67 to USD 2.70. The figures make recurring revenue growth and acquisition execution the key measures for evaluating the new European platform.

Analysts see further upside

MarketScreener lists a Buy consensus from five analysts with an average price target of USD 85.40. That target lies 15.50 percent above the USD 73.94 reference price, using the October 7, 2026 Nasdaq close.

The valuation case now depends on whether Digi can convert sensor deployments into subscription revenue while maintaining the cash generation needed to fund debt-backed acquisitions. Digi's latest quarterly operating cash flow was USD 33 million, compared with USD 24 million in the prior-year quarter.

Stock stays below its yearly high

Digi International stock closed at USD 73.94 on Nasdaq on October 7, 2026, down 0.83 percent from the prior close of USD 74.56. The price stood 14.85 percent below the 52-week high of USD 86.84 and above the 52-week low of USD 34.41.