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Digi purchase expands ARM-based embedded networking solutions

April 01, 2005

colin.holland-April 01, 2005

LONDON — Digi International has acquired FS Forth-Systeme and Sistemas Embebidos, both suppliers of embedded modules and software for the expanding embedded networking market.

The initial purchase price is $4.4 million and is subject to possible post-closing adjustments, and additional payments over two yearsdependent on FS Forth and Sistemas Embebidos achieving certain targets. FS Forth and Sistemas Embebidos, which are privately held and previously a part of Embedded Solutions AG of Germany, will operate as separate legal entities but will be included in Digi International's consolidated financial statements.

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

The purchase brings Digi a range of commercially available, embedded networking modules based on the company's NET+ARM architecture and supporting embedded software In addition, the acquisition adds expertise in a range of operating systems such as Linux, Windows CE and VxWorks.

Joe Dunsmore, CEO of Digi International, said,"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. As with our co-processor strategy, Digi customers will have the unique ability to migrate seamlessly from core module to chip, protecting their R&D investment".

Since formation in 1983, FS Forth and Sistemas Embebidos has built an wide customers base such as Siemens, Hirschmann, Sauter, Pro Control , Bizerba, AFT Atlas, Ikusi and Metso Automation.

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