Trimble and AGCO to form joint venture

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. 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:

1. a long-term Supply Agreement through which Trimble will provide the JV with key GNSS and guidance technologies (“Supply Agreement”),
2. 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
3. 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”).

Portfolio of agriculture technologies

The JV will align two 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 today 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 can help us better serve farmers and OEMs together,” said Rob Painter, Trimble’s president and chief executive officer. “We look forward to beginning a new chapter with AGCO to bring precision agriculture to both the factory and to the aftermarket.”