Cobalt Service Partners (“Cobalt”), a commercial access solutions platform backed by Alpine Investors (“Alpine”), announced its acquisition of Digi Security Systems (“Digi”), a leading commercial security integrator. Digi marks Cobalt’s seventh acquisition since launching in December 2023.
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“Digi is an exceptional business with exceptional people”
Digi was founded in Tulsa, Oklahoma in 2003 by Digi’s President, Joshua Herron. At the time of Digi’s founding, Herron was a software developer at RAE Corporation (“RAE”), a Pryor-based commercial refrigeration and HVAC manufacturing company. Herron began assisting local organizations with installation and maintenance of their security systems and soon thereafter, Digi was established as a standalone business within RAE.
More than 20 years later, Digi has over 100 employees across its offices in Tulsa, Oklahoma City, and Dallas, and has served more than 1,000 customers. While Digi supports customers across a variety of commercial end markets, it has a particularly impressive track record with educational organizations such as public school districts and universities. With the increasing importance and technological complexity of security within these organizations, Digi’s work is as critical as ever.
Under Cobalt’s ownership, Herron and the rest of the Digi executive team (Vice President Tyler Nichols, Chief People Officer Brooke Lade, and Vice President of Operations Kaitlyn Verity) will continue in their current roles. Further, to supplement the team and accelerate growth of the business, Cobalt plans to appoint a CEO for Digi in the near-term.
“The Cobalt team is phenomenal,” said Herron. “Over a hundred companies sought our partnership, but Cobalt stood out as a team fully dedicated to the same thing we are – people. We couldn’t be more excited about this next era in Digi’s history.”
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“I couldn’t ask for a better company than Cobalt to partner with Digi,” said Eric Swank, CEO of RAE Corporation. “Cobalt’s culture and performance were a perfect fit for us, and the combination will lead to even greater performance for Digi’s people and partners.”
“Digi is an exceptional business with exceptional people,” said Anthony Gonzalez, Co-CEO of Cobalt. “Digi is exactly the kind of organization Cobalt is looking to partner with, and we are truly honored that Eric and the Digi team chose Cobalt as Digi’s home for this exciting next chapter.”
Infinity Capital Partners served as Digi’s sole financial advisor and McAfee & Taft served as Digi’s legal counsel. Kirkland & Ellis served as legal counsel to Cobalt.
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