AGCO to acquire Trimble ag assets and technologies

For a price of $2 billion, AGCO will have 85% ownership of Trimble's ag products.

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Published on September 28, 2023

Two Fendt tractors in a field — Photo:
AGCO

AGCO has entered into a joint venture with Trimble to acquire an 85% interest in Trimble’s ag assets and technologies portfolio, for $2 billion. This deal is the largest in AGCO’s 33-year history.

“Farmers today are looking for mixed fleet solutions across their tractors and the implements they use to most efficiently and sustainably feed the world,” says Rob Painter, CEO of Trimble. “We believe a joint venture with AGCO, complemented by the successful mixed fleet approach they have developed with their Precision Planting business model, can help us better serve farmers and OEM’s together."

The joint venture will complement AGCO’s existing precision ag portfolio to deliver solutions across the crop cycle while supporting more than 10,000 equipment models. It creates a mixed-fleet precision ag platform that will be the exclusive provider of Trimble Ag’s comprehensive technology offering, supporting the future development and distribution of next-generation ag technologies.

“This landmark transaction creates a joint venture that becomes the premier mixed-fleet precision ag business in the world and accelerates AGCO’s strategic transformation,” says Eric Hansotia, AGCO’s chairman, president, and CEO. “This deal significantly enhances AGCO’s technology stack with disruptive technologies that cover every aspect of the crop cycle, which ultimately helps us better serve farmers no matter what brand they use.”

Trimble Ag offers a wide variety of technologies compatible across brands, equipment models, and farm types. Its hardware and software solutions and cloud-based applications touch all aspects of the crop cycle, from land preparation to planting and seeding to harvest.

“The exclusive access to Trimble Ag products, combined with AGCO’s existing precision ag offerings also accelerates AGCO’s growth ambitions around autonomy, precision spraying, connected farming, data management, and sustainability,” says Hansotia. “All of these touchpoints will result in us being even more farmer focused.”

Closing is expected in the first half of 2024, subject to the satisfaction of regulatory approval and customary closing conditions. AGCO also announced that its grain and protein business will be placed under strategic review to ensure customers receive the best possible service.