MobiApps employs 63 people in India, Singapore, and the United States, with a vast majority based in its India headquarters in Bangalore. The asset purchase positions Digi with satellite products and technologies that complement its wireless M2M strategy. MobiApps has a strong technology and product position in the Orbcomm satellite ecosystem. MobiApps recently introduced a new generation of products based on its own custom designed and patented mixed signal application specific integrated circuit (ASIC), which dramatically reduces the complexity and improves performance of satellite M2M system solutions. Satellite M2M applications include fleet management, marine vessel tracking, container tracking, agricultural monitoring, energy management, and remote field service applications. Satellite is especially suited to applications that cross country and continental boundaries, providing connectivity in very remote locations, and providing mission critical wireless backup solutions when cellular coverage is insufficient. MobiApps also has cellular and hybrid cellular/satellite products packaged with various asset tracking management services, including employee tracking, focused on markets in India and Southeast Asia. MobiApp's India presence positions Digi to be much stronger in this targeted international growth market. MobiApps employs 53 people in India, including sales, marketing, and administrative staff, as well as approximately 30 engineers with strong wireless expertise. This cross-functional group of talented people provides a strong foundation for growth in India and Southeast Asia.
The purchase price of $3.0 million is a cash transaction for substantially all of the assets of MobiApps. An additional $0.5 million may be payable at the end of fiscal 2010, contingent on the achievement of certain performance milestones. Digi expects MobiApps to contribute in excess of $0.35 million in revenue for fiscal 2009, from date of acquisition. Digi anticipates MobiApps will contribute revenue in a range of $2.4 million to $3.0 million for fiscal year 2010. Digi expects the MobiApps acquisition will be approximately $0.01 to $0.02 dilutive for fiscal 2009, and that MobiApps' impact on earnings per diluted share will be breakeven to $0.02 dilutive for fiscal 2010. Pursuant to the terms of the asset purchase agreements, Digi International acquired the U.S. assets of MobiApps, located in Herndon, Virginia. Digi established Digi Wireless Singapore Pte. Ltd. and Digi m2m Solutions India Private Limited, which acquired the assets of MobiApps' affiliate companies located in Singapore and India, respectively.