Digi International® Acquires MaxStream

Minnetonka, MN - Digi International® Inc. recently announced the acquisition of MaxStream, Inc. The acquisition is a merger transaction for $38.5M of cash and stock, with $19.25M paid in cash and $19.25M in Digi stock. Based in Lindon, Utah and employing 49 people, MaxStream generated $10.4M in revenue and $1.3M in net income, or 12.7% of revenue, in the year ending December 31, 2005.

Pursuant to the terms of the merger agreement, MaxStream became a wholly owned subsidiary of Digi. The cash and stock purchase price was used to purchase all of the outstanding shares of MaxStream stock and to buy out all outstanding MaxStream stock options. Digi will retain the MaxStream office in Lindon, Utah.

SOURCE: Digi International® Inc.