Digi Acquires Wireless Design Services Firm Spectrum Design Solutions

(Business News & Technology News, 25 Jul 2008)

Digi International Inc. has acquired Spectrum Design Solutions Inc., a privately held Minneapolis-based corporation focusing on wireless design services. The acquisition is a cash merger, with $4 million payable at the acquisition date and $3 million to be paid at each of the eighteenth and thirty-six months following acquisition.

Spectrum Design Solutions 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.

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 million 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.

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