Trimble on 28 September, announced a definitive agreement to form a joint venture (JV) with AGCO to better serve farmers with factory fit and aftermarket applications in the mixed fleet precision agriculture market
Aligning two leading companies, the JV’s technology is expected to offer customers seamless integration and connectivity across geographies, equipment brands and the crop life cycle. For dealers on the other hand, it is expected to better serve farmers with a broad, complementary, and leading technology portfolio.
Under the terms of the JV, Trimble will contribute its precision agriculture business, excluding certain Global Navigation Satellite System (GNSS) and guidance technologies, while 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.
In aggregate, Trimble expects approximately US$3bn in value from the transaction from pre-tax cash proceeds, Trimble's 15% stake in the joint venture, and the related commercial agreements.
Following completion of the transaction, Trimble will continue to deliver its differentiated technologies at the intersection of the physical and digital worlds across its core businesses.
The transaction is expected to result in significant benefits to Trimble, including simplification of connect and scale strategy; enhancement of financial profile and flexibility; and a de-risking of Trimble’s channel transition in the agriculture market.