TRMB - Analysts See AGCO And Trimble's $2.4B Partnership As 'Positive Catalyst' For Farm Equipment Giant's Stock | Benzinga
AGCO Corporation (NASDAQ:AGCO) and Trimble Inc. (NASDAQ:TRMB) have announced a significant merger of their precision-agriculture businesses.
Barron’s reported that AGCO will own 85% of the joint venture after paying Trimble $2 billion.
The joint venture, touted by AGCO CEO Eric Hansotia as the biggest agricultural technology deal ever, is valued at approximately $2.4 billion. The deal outpaces the 2021 acquisition of precision-agriculture company Raven by CNH Industrial (NYSE:CNHI) for $2.1 billion.
Precision agriculture, a relatively new sector in the ancient farming industry, utilizes computing power and software for efficient farming practices. The technology can deliver benefits such as guided self-driving tractors, improved seed placement, and targeted use of fertilizer and pesticides.
See Also: Chip Breakthrough Sends U.S. Scrambling For New Measures To Stifle Huawei
The deal is expected to accelerate AGCO’s development of precision-farming technology, enabling ...