Trimble, announced a definitive agreement to form a joint venture (the “JV”) with AGCO to better serve farmers with factory fit and aftermarket applications in the mixed fleet precision agriculture market. Trimble and AGCO’s shared vision is to create a global leader in mixed fleet smart farming and autonomy solutions.
In aggregate, Trimble expects approximately $3 billion in value from the transaction from pre-tax cash proceeds, Trimble’s 15 percent stake in the joint venture, and the related commercial agreements.
Under the terms of the JV, Trimble will contribute its precision agriculture business (“Trimble Ag“) excluding certain Global Navigation Satellite System (“GNSS”) and guidance technologies and AGCO will contribute its JCA Technologies business, which is a leader in the development of autonomous software for agricultural machines, implement controls and electronic system components. Trimble will receive $2 billion in pre-tax cash proceeds plus a 15% stake in the JV. In addition, the parties will enter into (i) a long-term Supply Agreement through which Trimble will provide the JV with key GNSS and guidance technologies (“Supply Agreement”), (ii) a Technology Transfer and License Agreement (“TTLA”) to govern the licensing of Trimble trademarks and technology for use by the JV after the expiration of the Supply Agreement and (iii) a Positioning Services Agreement through which the JV will serve as a channel partner to Trimble for its positioning services in the agriculture market (collectively, the “Commercial Agreements”).
Delivering a Leading Portfolio of Agriculture Technologies
The JV will align two leading companies dedicated to serving farmers worldwide with cutting-edge technologies to help farmers drive productivity, efficiency and sustainability. For customers, the JV’s technology is expected to offer seamless integration and connectivity across geographies, equipment brands and the crop life cycle. For dealers, it is expected to better serve farmers with a broad, complementary, and leading technology portfolio.
“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 together,” said Rob Painter, Trimble’s president and chief executive officer. “Trimble has a rich history of forming and cultivating joint ventures with industry leaders such as Caterpillar, Nikon and Hilti and we are excited about this opportunity with AGCO and its family of leading brands. We look forward to beginning a new chapter with AGCO to bring precision agriculture to both the factory and to the aftermarket.”
“The exclusive access to Trimble Ag products, combined with AGCO’s existing Precision Ag offerings, accelerates AGCO’s growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability,” said Eric Hansotia Chairman, President and CEO of AGCO Corporation. “All of these touchpoints will result in our team being even more farmer focused.”
SOURCE : PRNewswire