What started as a strategic partnership in 2019 has resulted in Valmont Industries acquiring artificial intelligence (AI) company Prospera Technologies for $300 million.
In its news announcement, Valmont says this acquisition forms the largest vertically-integrated global agriculture company.
Based in Tel Aviv, Israel, Prospera has developed data analytics and computer vision technology that can be applied to every pass the irrigation pivot makes. The Prospera artificial intelligence algorithm is enhanced with pivot-mounted sensors, as well as other remote sensing technologies, which is then used to automatically adjust the water, crop protection or other production decisions.
In 2020, Prospera technology monitored five million acres in 2020, a huge jump from its original 1 million acre goal.
“Today’s acquisition is a testament to our commitment to make the farm more efficient and increase productivity while dramatically improving sustainability,” Valmont President and Chief Executive Officer Stephen G. Kaniewski said in the company’s announcement. “Building on the successful partnership with Prospera, we are accelerating our commitment to provide services that enhance the lives of our customers and the communities in which they operate, as well as finding new ways to achieve higher crop yields using less – land, water, chemicals, fertilizers, fuel and time.”
The transaction is expected to close in the second quarter of 2021. Prospera was founded in 2014.
“Our strategic partnership has demonstrated the unique combined value of Prospera’s capabilities and Valmont’s agricultural expertise and market leadership,” said Prospera Co-Founder and Chief Executive Officer Daniel Koppel. “This combination is the fastest way to scale impactful ag-tech solutions. We are excited about the future and the opportunity to continue to further our work to feed an expanding global population through our machine learning technologies that al-low growers to make more informed, efficient and scientific decisions.”
