Digi buys FS Forth-Systeme, Sistemas Embebidos for $4.4 million

To help create what it reports is the broadest range of ARM-based, embedded networking solutions, Digi International has purchased FS Forth-Systeme GmbH and Sistemas Embebidos S.A. Both companies manufacture embedded modules and software for the embedded networking market.

The addition of FS Forth and Sistemas Embebidos adds commercially available, embedded networking modules based on Net+Arm and other architectures with supporting embedded software to Digi’s embedded product portfolio. In addition, the acquisition adds expertise in popular operating systems such as Linux, Windows CE, and VxWorks. Coupled with Dits Net+Arm family of 32-bit network microprocessors and Net+Works complete development environment, Digi states that its transaction deal extends its lead in providing ARM-based embedded networking products.

The deal’s price tag includes an initial payment of $4.4 million and is subject to possible post-closing adjustments and additional payments over two years. The additional payments are dependent on FS Forth and Sistemas Embebidos achieving certain future milestones.

FS Forth and Sistemas Embebidos, which are privately held and previously a part of Germany-based Embedded Solutions AG, will operate as separate legal entities, but will be included in Digi’s consolidated financial statements. Digi anticipates that this acquisition will be accretive to earnings in fiscal year 2005.

“This acquisition enables Digi to address the networked core module business opportunity much more aggressively. We now have the ability to target Linux-, Windows CE- and VxWorks-centric applications, in addition to Net+O/S,” says Joe Dunsmore, Digi’s CEO. “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.”

Klaus Flesch, FS Forth and Sistemas Embebidos’ CEO, adds that, “We’re excited to join forces with Digi. It is a strong confirmation of our long-term strategy, and our combined product offering, together with Digi’s strong brand and world-wide market, will enable tremendous customer success.”

Jim Montague, news editor, Control Engineering, jmontague@reedbusiness.com

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