AGCO, the parent company behind brands such as Fendt, Massey Ferguson and Valtra, has acquired 85% of the well-known precision farming specialist Trimble Agriculture.

With the new agreement, the AGCO Corporation has entered into a Joint Venture (JV) with Trimble, where it will be the exclusive distributor of Trimble Ag’s comprehensive offering, including products such as its guidance steering systems, monitors and software.

The purchase price of $2 billion (€1.9 billion) is expected to be funded by a combination of existing liquidity, free cash flow generation and new debt. The acquisition is expected to be finalised in the first half of 2024.

Landmark transaction

“This landmark transaction creates a JV that becomes the premier mixed-fleet Precision Ag business in the world and accelerates AGCO’s strategic transformation.

“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,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer.

AGCO has acquired 85% of the well-known precision farming specialist Trimble Agriculture.