Acquisitions bolster embedded networking expertise

Edited by the Electronicstalk editorial team Apr 4, 2005

Digi International has acquired two leading providers of embedded modules and software for the rapidly expanding embedded networking market.

Digi International has acquired FS Forth-Systeme and Sistemas Embebidos, two leading providers of embedded modules and software for the rapidly expanding embedded networking market.

The addition of FS Forth and Sistemas Embebidos immediately adds a wide range of commercially available, embedded networking modules based on the high-performance NET+ARM architecture and supporting embedded software to Digi's embedded product portfolio.

In addition, the acquisition adds expertise in a wide range of popular operating systems such as Linux, Windows CE and VxWorks.

Coupled with Digi's NET+ARM family of 32bit network microprocessors and the NET+Works complete development environment, the acquisition extends Digi's lead in providing the industry's broadest range of ARM-based embedded networking products.

The purchase price includes an initial payment of $4.4 million and is subject to possible post-closing adjustments, and additional payments over two years.

The additional payments are dependent on FS Forth and Sistemas Embebidos achieving certain future milestones.

FS Forth and Sistemas Embebidos, which are privately held and previously a part of Embedded Solutions of Germany, will operate as separate legal entities but will be included in Digi International's consolidated financial statements.

Digi expects that this acquisition will be accretive to earnings in fiscal year 2005.

"This acquisition enables Digi to address the networked core module business opportunity much more aggressively".

"We now have the ability to target the Linux, Windows CE and VxWorks centric applications in addition to NET+O/S", says Joe Dunsmore, CEO of Digi International.

"As with our coprocessor strategy, Digi customers will have the unique ability to migrate seamlessly from core module to chip, protecting their R and D investment".

"We are excited to join forces with Digi".

"It is a strong confirmation of our long term strategy, and our combined product offering together with Digi's strong brand and world-wide market will enable tremendous customer success", said Klaus Flesch, CEO of FS Forth and Sistemas Embebidos.

Since its inception in 1983, FS Forth and Sistemas Embebidos has developed solid relationships with customers such as Siemens, Hirschmann, Sauter, Pro Control, Biserba, AFT Atlas, Ikusi and Metso Automation.