AGCO Corp., one of the world’s largest tractor makers, will acquire technology assets from Trimble Inc. for $2 billion to boost its offerings in the precision agriculture market.
Under the deal announced by both companies on Sept. 28, Trimble will carve out its agricultural tech business and turn it into a standalone joint venture, with AGCO owning 85% and Trimble owning 15%.
The move could help make AGCO, whose brands include Fendt and Massey Ferguson, a more serious competitor to Deere & Co., the global leader in precision farming.
“This new entity will create the best mixed-fleet experience across all brands and hundreds of OEMs so farmers can get what they need,” AGCO CEO Eric Hansotia said in an interview with Bloomberg, referring to original equipment manufacturers.