Press release
Trimble and AGCO to Form Joint Venture to Better Serve Farmers Worldwide with Mixed Fleet Precision Agriculture Solutions
Joint Venture to Accelerate Innovation in Factory-Fit and Aftermarket Solutions to Benefit Farmers Across the Globe Transaction to Simplify and Accelerate
About this update from Trimble Inc.
[{"type":"text","content":"Joint Venture to Accelerate Innovation in Factory-Fit and Aftermarket Solutions to Benefit Farmers Across the Globe\nTransaction to Simplify and Accelerate Trimble's Focus on its Connect and Scale Strategy\nWESTMINSTER, Colo., Sept. 28, 2023 /PRNewswire/ -- Trimble (NASDAQ: TRMB) announced today a definitive agreement to form a joint venture (the \"JV\") with AGCO (NYSE: AGCO) to better serve farmers with factory fit and aftermarket applications in the mixed fleet precision agriculture market. Trimble and AGCO's shared vision is to create a global leader in mixed fleet smart farming and autonomy solutions. \n\n \n \n \n \n \n \n\n \nIn 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.\nUnder the terms of the JV, Trimble will contribute its precision agriculture business (\"Trimble Ag\") excluding certain Global Navigation Satellite System (\"GNSS\") and guidance technologies and 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 (i) a long-term Supply Agreement through which Trimble will provide the JV with key GNSS and guidance technologies (\"Supply Agreement\"), (ii) 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 (iii) 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\").\nDelivering a Leading Portfolio of Agriculture Technologies \nThe JV will align two leading 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 ...