DIGI INTERNATIONAL Business Summary

Digi International Inc. (DGII) is a global provider of business and mission-critical Internet of Things (IoT) connectivity products, services, and solutions. The company generates revenue through a hybrid model of one-time hardware sales and high-margin Annualized Recurring Revenue (ARR) derived from software-as-a-service (SaaS) and managed network subscriptions. Its operations are divided into two primary segments: IoT Products & Services, which provides embedded systems, cellular routers, and infrastructure management tools to OEMs and enterprise customers; and IoT Solutions, which includes the SmartSense and Ventus brands offering Managed Network-as-a-Service (MNaaS) for industries like healthcare, transportation, and retail. Following the January 2026 acquisition of Particle Industries, Digi has significantly accelerated its transition toward an "embedded-as-a-service" model, targeting a long-term goal of $200 million in ARR. Direct competitors include Lantronix, Semtech (Sierra Wireless), Ericsson (Cradlepoint), and Cisco Systems; Digi maintains a competitive edge through its focus on ruggedized, secure, and end-to-end industrial IoT ecosystems. Founded in 1985 by former rocket scientist John Schinas and a team of engineers, Digi International has evolved from a serial connectivity pioneer into an IoT leader. The current leadership team is headed by President and CEO Ron Konezny, a two-time Ernst & Young Entrepreneur of the Year winner with extensive telematics experience from PeopleNet and Trimble. He is supported by Executive Vice President and CFO Jamie Loch, formerly of Honeywell and Nilfisk, and Senior Vice President and CIO Jim Freeland, who joined in 2024 from Medtronic. David Sampsell serves as EVP of Corporate Development and General Counsel, overseeing the company's aggressive M&A strategy. The company is governed by a board led by Non-Executive Chairman Dr. Satbir Khanuja and includes directors such as Hatem Naguib (CEO of Barracuda Networks) and Chris Heim. Major institutional backing is provided by investors such as BlackRock, Dimensional Fund Advisors, and Vanguard, which collectively hold over 90% of the company’s equity.