Digi acquires TempAlert for $45m
October 24, 2017
Digi has acquired Massachusetts-based TempAlert, a provider of automated, real-time temperature monitoring and task management for the healthcare, industrial and foodservice industries, for $45m in cash plus future earn out incentives.
With its origins at the Massachusetts Institute of Technology, TempAlert is in use at more than 20,000 customer sites including Walmart, CVS Health, SpaceX, Apple, Coca-Cola, McDonald's and the US Department of State.
With its fourth strategic acquisition in two years, Digi has nearly 35,000 customer sites and a deep presence in the healthcare, transportation, industrial and foodservice markets. In aggregate, the Digi Smart team offers more than 25 years of condition-based monitoring experience gained through managing more than six billion sensor readings.
Digi Smart says it improves the integrity of product quality and safety while simultaneously lowering costs, achieving higher levels of customer satisfaction and improving brand reputation. Its automated, real-time monitoring combined with task management software also address the needs of customers with challenges that span operational and safety regulatory requirements.
The TempAlert system will not only be supported and enhanced, but also leveraged within Digi's existing products and services to expand its portfolio.
TempAlert CEO Harry Schechter and the TempAlert team will become employees of Digi Smart. Schechter will play a leading role in the IoT strategy going forward and will report to COO Kevin Riley.
"This is a perfect match of expertise and a shared vision of the market opportunity in front of us," said Schechter. "The combination of Digi's market presence and complementary technology in conjunction with the TempAlert customer base presents a fantastic opportunity for Digi Smart."
TempAlert was founded in 2005 to transform how organisations sense, monitor and make decisions. It automates monitoring for food and medication safety and compliance, and monitors critical equipment and tanks for product quality and preventative maintenance.
"The acquisition of TempAlert doubles our smart team to over 100 professionals, allowing us to offer our customers unprecedented domain expertise and support," said Ron Konezny, president and chief executive officer at Digi. "This acquisition firmly establishes Digi as a leader in condition-based monitoring, such as temperature and vibration, task management and analytics."