Kubota to Purchase AgJunction
Announced on October 7, Kubota and AgJunction have entered into a definitive agreement for Kubota to acquire AgJunction in an all-cash transaction with a total equity value of approximately CAD $91 million.
The AgJunction board of directors unanimously approved the transaction after a confidential process of entertaining offers of third parties.
Lori Ell, Chair of the Board, commented "We are pleased to announce this transaction, which offers our shareholders a compelling opportunity to monetize their investment at an attractive valuation and significant premium to the current and historical trading price of the AgJunction shares. The Transaction is also expected to accelerate the execution of AgJunction's business plan, enhance access to additional customers and markets, provide efficiencies from greater scale and allows the opportunity for the retention of many AgJunction employees in the go-forward entity."
In the company’s official release it referenced the increased adoption of machine automation products requires a deeper integration with machine platforms as well as large scale distribution.
The deal is subject to the approval of AgJunction shareholders, which will have a special meeting in November 2021. And the transaction requires Canadian government approval.
AgJunction is headquartered in Scottsdale, Arizona and markets its guidance and autosteering products under brand names including Novariant, Wheelman, Whirl and Handsfreefarm. The company previously had a strategic partnership with Kubota.
Kukota is headquartered in Japan with sales of its ag, turf and construction equipment in more than 120 countries.
