In its biggest acquisition deal ever, Digi International Inc. has agreed to pay $140 million for a critical IT infrastructure company whose customers include Target, Best Buy and Netflix.

"Opengear and Digi share a lot of DNA, we've competed against each other, we have employees that used to work at Opengear," said Ron Konezny, president and chief executive of Digi International in an interview. "The good news is it wasn't a new name."

Digi is a Hopkins-based wireless-communication company that provides internet of things connectivity products and solutions and had annual revenue of $228 million for its fiscal year ended Sept. 30, 2018. The company is expected to announce its fourth-quarter and year-end results Nov. 14.

Opengear was founded in 2004, and its software and appliances help customers manage data centers and remote networks.

Through the first three quarters of 2019, Opengear had revenue of $41.9 million and net income of $13.7 million.

"Digi and Opengear will mesh well as we share so many of the same values in how we treat our customers and employees," said Opengear CEO Gary Marks in a news release. "Our products are complementary, so customers and partners will get exceptional choice."

Opengear's customers include 75 of the top Fortune 100 companies. The company has 136 employees and has research and development offices in Silicon Valley and Brisbane, Australia, with its main office in Sandy, Utah.

This is the sixth and largest acquisition by Digi under Konezny's leadership, and he said that past success in acquiring and integrating other companies was critical background when it came time to acquire Opengear.

Digi intends to pay for the Opengear transaction and integration with cash and $150 million in new debt that includes a $100 million revolving line of credit.

Digi has largely been a debt-free company under Konezny's leadership.

"We are buying a growing and profitable company," Konezny explained at an employee meeting. "Debt financing is much more favorable to shareholders and debt is very, very affordable right now."

The deal is expected to close by the end of the year and is dependent on customary conditions.

The deal was announced after the markets closed Thursday. On Friday, Digi's shares closed at $14.94, up 5.5%. The shares are up 47% year-to-date and have traded in the range of $9.28 to $15.58 over the past 52 weeks.