Published - 15 Mar 2023
Before announcing the deal, CNH Industrial already owned 10.5 percent of the company and will pay for the rest with its existing cash reserves.
A French company that automates agriculture, Augmenta, has been acquired by CNH Industrial, an Italian-American heavy machinery producer. The acquisition will boost CNH Industrial’s innovative Sense & Act technology that improves agricultural productivity. The enterprise value of the deal is US$110 million with some customary adjustments. CNH Industrial was a previous investor and strategic partner of Augmenta.
President Agriculture at CNH Industrial, Derek Neilson, stated, “Our work with Augmenta has brought increasing benefits to our customers’ operations. What began as a minority investment in their potential, now culminates in our adding this proven technical excellence directly to our sprayer offering. This is an important development for our agriculture business that will further support our dealers by differentiating our equipment through value-added technology.”
Before announcing the deal, CNH Industrial already owned 10.5 percent of the company. They are expected to pay for the rest with their existing cash reserves. The company expects to close the deal in the first quarter of 2023, pending the completion of customary closing conditions and regulatory approvals.
“Augmenta’s technology will expedite the development of our broader ‘Sense & Act’ capabilities to create value for our customers,” said Parag Garg, Chief Digital Product Officer, CNH Industrial. Based on sensor data during the spraying process, this technology allows machines to spray selectively and apply protection solutions to crops before and after harvest. This technology also precisely directs and regulates the spray volume.
Augmenta has developed a multispectral camera and software that can monitor and control a machine’s operating environment. This technology helps customers increase their yield, reduce their chemical and fertiliser use for sustainability, and save time, effort, and input costs. The biggest value pool for this technology comes from savings in herbicides, fungicides, plant growth regulators, and fertilisers.
Augmenta will be part of the Raven brand, under the precision technology portfolio. It will keep its current employees and offices in Greece and the USA.
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