Kubota buys precision ag supplier

AgJunction Inc. a supplier of advanced guidance, autosteering, and autonomy solutions for precision agriculture applications, has entered into a definitive arrangement agreement to be acquired by Kubota Corp., headquartered in Osaka, Japan, in an all-cash transaction with a total equity value, on a fully diluted basis, of approximately CAD $91 million.

Agricultural machine automation is rapidly advancing with increasing investment and consolidation. Adoption of new automation demands tighter vehicle integration and large scale distribution. Given the competitive landscape, delayed adoption rates due to COVID-19, capital requirements and available sources of capital, AgJunction’s board initiated a confidential process, supervised by the special committee in order to review strategic alternatives available to AgJunction and, if they emerged, to consider expressions of interest from third parties and any other transactions that AgJunction may consider in connection with strategic matters that are determined to be in the best interests of AgJunction. With the assistance of AgJunction’s financial advisor, Piper Sandler & Co., potentially interested parties were contacted to determine their interest level in pursuing a strategic transaction with AgJunction.

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

Based in Scottdale, Ariz., AgJunction’s technologies are critical components for more than 30 of the world’s leading precision ag manufacturers and solution providers and it owns or licenses over 200 patents and patents pending. AgJunction markets its solutions under brand names including Novariant, Wheelman, Whirl and Handsfreefarm.