Cobalt Service Partners, a commercial access solutions platform, announced the acquisition of Digi Security Systems, a commercial security integrator based in Tulsa, Okla. 

Digi Security was founded in 2003 by Joshua Herron who serves as president. At the time of Digi’s founding, Herron was a software developer at RAE Corp., a Pryor, Okla.-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 particularly operated within educational organizations such as public school districts and universities. 

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, according to the announcement. 

“The Cobalt team is phenomenal,” stated 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.” 

Cobalt is backed by Alpine Investors. Digi Security marks Cobalt’s seventh acquisition since launching in December 2023, including four companies in April.

“I couldn’t ask for a better company than Cobalt to partner with Digi,” said Eric Swank, CEO of RAE Corp. “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.” 

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.