Digi International Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Digi International (Nasdaq: DGII) announced plans for an underwritten public offering of its common stock, aiming to sell shares with a potential 30-day option for underwriters to purchase an additional 15%. The proceeds will be used for working capital, general corporate purposes, and possible acquisitions, although no specific agreements are in place. The offering is contingent on market conditions and detailed terms will be disclosed later. Piper Sandler is the book-running manager for this offering.

Positive

• Intended use of proceeds includes working capital and potential strategic acquisitions.
• Possibility of an additional 15% share purchase option for underwriters may attract more investors.

Negative

• Potential dilution of existing shareholders' equity due to the issuance of new shares.

Digi International Inc. (Nasdaq: DGII) (Digi), a leading global provider of business and mission critical Internet of Things (IoT) products, services and solutions, announced today that it intends to offer and sell shares of its common stock in an underwritten registered public offering. In addition, Digi expects to grant the underwriters a 30-day option to purchase an additional 15% of the shares of its common stock offered in the proposed offering on the same terms and conditions. All shares of common stock to be sold in the proposed offering will be sold by Digi. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Digi intends to use the net proceeds from the proposed offering, if completed, for working capital and general corporate purposes. Digi may also use the net proceeds to acquire or invest in complementary businesses, products and technologies, although Digi has no specific agreements, commitments or understandings to do so at this time.

Piper Sandler is acting as sole book-running manager for the proposed offering.

The proposed offering is being made pursuant to a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC) that became automatically effective on March 2, 2021. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering will be filed with the SEC and will be available by visiting the SEC’s website at www.sec.gov or by contacting Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at (800) 747-3924 or by email at prospectus@psc.com. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Digi International

Digi International is a leading global provider of IoT connectivity products, services and solutions. Digi helps its customers create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security and reliability. Founded in 1985, Digi has helped its customers connect over 100 million things and growing.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements regarding, but not limited to, Digi’s intention to offer and sell shares of its common stock and the expected use of the proceeds from the proposed offering. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue” or comparable terminology. Forward-looking statements involve risks and uncertainties that could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Digi’s operations, markets, products and services. Digi identifies the principal risks and uncertainties that impact its performance in its public reports filed with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition” sections of Digi’s most recent Annual Report on Form 10-K, as may be supplemented or amended by Digi’s subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and Digi assumes no obligation to update any forward-looking statements, except as required under applicable law.

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FAQ

What is the purpose of Digi International's stock offering on Nasdaq: DGII?

Digi intends to use the net proceeds for working capital and general corporate purposes, including potential acquisitions.

How many shares is Digi International planning to sell in the offering?

Digi plans to sell shares with a possible 30-day option for underwriters to purchase an additional 15%.

Who is managing Digi International's stock offering?

Piper Sandler is acting as the sole book-running manager for the proposed offering.

What are the risks associated with Digi's stock offering?

There is a risk of dilution for existing shareholders due to the issuance of new shares.

When will details of the offering be available?

Final terms will be disclosed in a prospectus supplement to be filed with the SEC.