Digi International acquires French company
Sherri Cruz
Star Tribune
Tuesday, June 12, 2001
Digi International Inc. said it bought French company Decision Europe for an initial payment of $2.3 million.
Minnetonka-based Digi specializes in hardware and software products that connect devices to networks.
The purchase of Decision Europe, which sells under the brand name Xcell Technology, augments Digi's growth areas of "thin server" (more computing power in a smaller
space) and wireless products, Digi said. Digi targets retail and industrial automation markets, and distributes largely through Ingram Micro and Tech Data.
In addition to the $2.3 million initial payment, Digi will make payments over three years, subject to Decision Europe's ability to meet certain milestones, said Burk Murray,
Digi's marketing vice president.
Decision Europe will operate as a separate entity but will be included on Digi's consolidated statement of operations. Digi expects Decision Europe to contribute to earnings in
2002.
Digi also announced Monday the appointment of Brad Williams, co-founder and chief operating officer of Raviant Networks, to its board of directors.
Digi had net sales of $33 million its second quarter, a 28 percent increase over the same quarter last year. Net income for the quarter was $600,000, or 4 cents per diluted
share, vs. a net loss of $13.3 million, or 88 cents per diluted share, during the same quarter last year.
Shares of Digi closed Monday at $9.11, up 10 cents.
Digi was founded in 1985 and went public in 1989. It has several offices worldwide, including Sunnyvale, Calif., Hong Kong and Germany. It employs about 500 people.
-- Sherri Cruz is at scruz@startribune.com .
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