Sunday, December 3, 2023

AGCO boosts agri tech portfolio in $3.35bn deal

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The deal will see AGCO acquire an 85% interest in Trimble’s portfolio.
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AGCO Corporation, a worldwide manufacturer and distributor of agricultural machinery and precision ag technology, has entered into a joint venture with Trimble.

The deal will see AGCO acquire an 85% interest in Trimble’s portfolio of ag assets and technologies for cash consideration of US$2 billion ($3.35bn) and the contribution of JCA Technologies.

The JV creates a global leading mixed-fleet precision ag platform that will be the exclusive provider of Trimble Ag technology. 

Trimble Ag’s hardware, software solutions and cloud-based applications span all aspects of the crop cycle, from land preparation to planting and seeding to harvest.

“This landmark transaction creates a JV that becomes the premier mixed-fleet precision ag business in the world and accelerates AGCO’s strategic transformation,” Eric Hansotia, AGCO’s chair, president and chief executive, said. 

“This deal significantly enhances AGCO’s technology stack with disruptive technologies that cover every aspect of the crop cycle, which ultimately helps us better serve farmers no matter what brand they use.”

Trimble chief executive Rob Painter said farmers are looking for mixed fleet solutions across their tractors and the implements that they use to most efficiently and sustainably feed the world.

“We believe a joint venture with AGCO, complemented by the successful mixed fleet approach that they have developed with their Precision Planting business model, can help us better serve farmers and OEMs [original equipment manufacturers] together.”

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