Kubota to acquire AgJunction, widening guidance capabilities

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AgJunction, a global provider of advanced guidance, auto-steering, and autonomy solutions for precision agriculture applications, is entering an agreement to be acquired by Kubota, in an all-cash transaction, for a total equity value of approximately $91 million.

Lori Ell, chair of the AgJunction board of directors, says they are pleased with the transaction, “which offers our shareholders a compelling opportunity to monetize their investment at an attractive valuation and significant premium to the current and historical price of the AgJunction shares.”

“The transaction is also expected to accelerate the execution of AgJunction’s business plan, enhance access to additional customers and markets, provide efficiencies from greater scale, and allows the opportunity for the retention of many AgJunction employees in the go-forward entity,” says Ell.

Agricultural machine automation is rapidly advancing with increasing investment and consolidation, which is why AgJunction is a valid option, says the company.

Following a thorough review of available alternatives, AgJunction’s board determined that Kubota represents the best alternative available for AgJunction to create substantial value for respective stakeholders, including the shareholders given the current industry, economic, and capital markets conditions as well as existing strategic relationship between AgJunction and Kubota.

Closing of the transaction is set to occur shortly after a meeting in November, upon satisfaction or waiver of all conditions.

Categories: Ag Business / Machinery / News

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