AGCO to Buy Trimble Assets for $2 Billion to Boost Farm Tech
[Stay on top of transportation news: Get TTNews in your inbox.]
AGCO Corp., one of the world’s largest agricultural tractor makers, will acquire technology assets from Trimble Inc. for $2 billion to boost its offerings in the so-called precision agriculture market.
CONNECTIVITY QUEST: Trimble continues pursuit of seamless supply chain
Under the deal announced by both companies in a statement Sept. 28, Trimble will carve out its agricultural technology business and turn it into a stand-alone joint venture, with AGCO owning 85% and Trimble owning 15%.
Trimble serves the agriculture and construction industries in addition to transportation.
The move comes as farm machinery makers have been investing more in software that helps growers manage fields with satellite-connected autonomous tractors. Such precision agriculture technology helps farmers maximize yields and also gives manufacturers a crucial source of additional revenue if tractor sales slow.
The deal could help make AGCO, whose brands include Fendt and Massey Ferguson, a more serious competitor to Deere & Co., the global leader in precision farming.
“This new entity will create the best mixed-fleet experience across all brands and hundreds of OEMs so farmers can get what they need,” AGCO Chief Executive Officer Eric Hansotia said in an interview, referring to original equipment manufacturers.
The deal gives AGCO exclusive access to Trimble’s agricultural products, which integrate data from satellites and fields in efforts to maximize crop yields and reduce the use of fertilizer and chemicals.
Want more news? Listen to today's daily briefing below or go here for more info:
