Minneapolis-based Digi International announced Jan. 27 that it has acquired Particle, an edge-to-cloud IoT application infrastructure provider, in a $50 million all-cash transaction.
Minneapolis-based Digi International announced Jan. 27 that it has acquired Particle, an edge-to-cloud IoT application infrastructure provider, in a $50 million all-cash transaction. The acquisition is aimed at accelerating annual recurring revenue (ARR) growth and strengthening Digi’s embedded-as-a-service offering within its IoT Products and Services segment.
Particle, founded in 2014, generates approximately $20 million in ARR through its subscription-based model and is growing ARR at a double-digit rate. Digi reported $32 million in ARR in its IoT Products and Services segment as of the fiscal quarter ended Sept. 30, 2025. Particle will be integrated into Digi’s OEM Solutions business, expanding Digi’s recurring revenue profile and software-driven offerings.
According to Digi, the deal enhances its capabilities across edge AI, edge computing, and cellular IoT, while enabling customers to design, deploy, and manage connected products at scale. Digi funded the acquisition through its existing credit facility. Moelis & Company served as Particle’s exclusive financial advisor on the transaction. Digi said it plans to provide updated fiscal 2026 guidance, including the impact of the acquisition, when it reports first-quarter earnings on Feb. 4, 2026.
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