LINDON, UTAH – July 28, 2006 – MaxStream, a global leader in embedded wireless connectivity, announced today it has been acquired by Digi International®, of Minnetonka, MN. The $38.5 Million MaxStream purchase was finalized this week in one of Utah’s largest technology company acquisitions.
“Digi International is a well respected global leader in commercial grade device networking applications. Adding MaxStream’s product line, engineering talent, and stellar sales force will enable them to broaden their brand and product offering,” said Brad Walters, MaxStream President and CEO. “This acquisition is truly beneficial for both organizations. Over the course of the past year, we have been courted by a number of companies seeking to acquire MaxStream. Ultimately, we felt Digi was the right fit for our technology, our culture and our future. This acquisition is focused on growth and the combination of technologies to enhance our product portfolios.”
MaxStream has received numerous accolades since its founding in 1999, and has experienced accelerating growth as the demand for embedded wireless communications technology has increased. MaxStream technology is incorporated by organizations ranging from small robotics manufacturers and security integrators, to multi-billion dollar military and industrial contractors.
“This is an exciting acquisition for us. Not only is this a strong strategic and financial story, but it is also a terrific cultural fit,” said Joe Dunsmore, CEO of Digi International. “We have found MaxStream to be an open, high integrity culture, where great listening and teaming are highly valued, and where innovation is ingrained. We have found the management team to be entrepreneurial and yet very disciplined, allowing them to lead the company to high revenue growth and consistent profitability. These values are very compatible with the Digi culture.”
In 2000, MaxStream received an initial investment of $1 million from the Canopy Group, a Utah-based venture capital firm. Shortly thereafter, MaxStream achieved profitability and has remained profitable ever since.
“We are very pleased with this agreement, and are encouraged that Digi International is investing in the future of MaxStream, its employees and in the strength of Utah’s economic development,” said Ron Heinz, Executive Director of Canopy Ventures. “This deal is a metaphor about the success Canopy’s portfolio companies are achieving. This deal between Digi International and MaxStream is just the beginning.”
About Digi International
Digi International, based in Minneapolis, makes device networking easy by developing products and technologies that are cost effective and easy to use. Digi markets its products through a global network of distributors and resellers, systems integrators and original equipment manufacturers (OEMs). For more information, visit Digi’s Web site at http://www.digi.com/
About MaxStream, Inc.
MaxStream is the leading worldwide developer of wireless modem networking for electronic devices. MaxStream provides wireless modem modules, stand-alone radio modems, RF design services, and supporting software. Products and services by MaxStream include esigning, manufacturing and supporting wireless communications for embedded systems. For more information regarding MaxStream's products and services, contact MaxStream, Inc. at http://www.maxstream.net/