Agco is to acquire Trimble’s precision agricultural business and technologies through a joint venture in which Agco has an 85% stake. Agco will pay Trimble US$2.0 billion in cash and contribute JCA Technologies to the joint venture in which Trimble has a 15 percent share.
The joint venture will not only develop and sell Trimble’s agricultural products, such as monitors, steering motors and software (excludes certain Global Navigation Satellite System and guidance technologies), but also the Mueller and Bilberry brands that are already part of Trimble Ag.
The acquisition of Trimble’s agriculture division will allow Agco and its brands – Fendt, Massey Ferguson and Valtra – to develop faster in precision agriculture, says Agco top man CEO Eric Hansotia. It will also give Agco access to farmers who do not use Agco machines.
“The exclusive access to Trimble Ag products, combined with Agco’s existing precision ag offerings also accelerates Agco’s growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability,” comments Mr Hansotia.
“Farmers are looking for solutions for their entire fleet of machines from different brands of tractors and implements,” says Rob Painter, Trimble’s CEO. “We believe a joint venture with Agco can help us better serve farmers and OEMs together.”
The acquisition is expected to be finalised in the first half of 2024, and Agco expects its combined precision ag revenue to exceed US$2.0 billion by 2028.
For the record, Trimble is a US$3.68 billion company and does significant business in other sectors apart from agriculture. These include construction, where the company has a joint venture with Caterpillar.