Trimble expects $3 billion in value from the transaction
Saying it wants to create a global leader in mixed fleet smart farming and autonomy solutions, Trimble TRMB 5.59%↑ has agreed to form a joint venture with AGCO AGCO 1.13%↑ to offer farmers factory and aftermarket solutions for the precision agriculture market. Overall, Trimble said it expects $3 billion in value from the transaction from pre-tax cash proceeds, its 15 percent stake in the joint venture and related commercial agreements.
Under the terms of the deal, which is expected to close in the first half of 2024, Trimble will offer its precision agriculture business, Trimble Ag, but exclude certain GNSS and guidance technologies. For its part, AGCO will offer its JCA Technologies business, which includes autonomous software for farm machines, implement controls and electronic system components.
Trimble said it will receive $2 billion in pre-tax cash proceeds plus a 15 percent stake in the joint venture. More than $1.5 billion in net proceeds will be used to repay $1.1 billion in debt and repurchase stock, the company said.
Other joint venture provisions include that the companies enter a supply agreement where Trimble will provide GNSS and guidance technologies. The deal allows for a technology transfer and license agreement that the joint venture will use after the expiration of the supply agreement. The joint venture will also serve as a Trimble channel partner for its positioning services in the ag market.
“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 CEO, in a statement.
Trimble and Kyivstar Partner for GNSS Correction Services in Ukraine
In other company news, Trimble and Kyivstar, Ukraine’s largest telecommunications company, are partnering to install a new Continuously Operating Reference Station (CORS) network to provide GNSS correction services across the embattled country. The companies say that the network will provide GNSS corrections data for agriculture, construction, geospatial, IoT and other commercial operations.
Trimble, as part of a revenue-sharing model with Kyivstar, will install the network on Kyivstar’s communication towers. The installation will use Trimble Alloy reference receivers for GNSS tracking and Trimble Zephyr model 3 antennas and its Pivot Platform software.
As the war in Ukraine rages on, Russian local area jamming has been a concern. “For ground-based users, jamming is a relatively localized threat. If individual stations are impacted by Russian jamming, the VRS system is tolerant of stations going down and will continue to operate,” said Oliver Casabianca, vice president, Trimble Positioning Services. “Pivot has user access control, so only authorized users will have access to the data.”
The company said the first phase of installation calls for 41 communication towers and is expected to be completed by the end of this year. A second phase, with 150 additional towers, is expected to be completed in 2024. “Installation and support will be provided by Trimble’s local geospatial distributor KMC Ltd. Safety and security is our priority, and all decisions will be made with this in mind,” Casabianca said.
In other Trimble news:
- In a busy week for Trimble, the company launched its SketchUp Viewer for Meta META 1.88%↑ Quest 2, Meta Quest Pro and Meta Quest 3, to allow users to present 3D SketchUp models in virtual reality. SketchUp Viewer for Quest enables interior designers, architects, engineers, and construction (AEC) professionals using a Quest VR headset to engage colleagues and clients in experiential design reviews for more informed decision-making and collaboration, the company said.
