OMAHA - Lindsay Corporation (NYSE: NYSE:LNN), a prominent player in the irrigation and infrastructure sector, has announced the acquisition of a 49.9 percent minority stake in the Austrian company Pessl Instruments GmbH.
This move, expected to close in the second half of fiscal 2024, will deepen the strategic partnership formed in May 2023 between the two firms, aiming to enhance technology solutions for agricultural producers globally.
Pessl, known for its METOS brand, specializes in advanced agricultural technology solutions, including IoT hardware and software tools that enable informed decision-making. The company's portfolio boasts over 80,000 connected in-field devices and a customer base of 50,000 active users. These devices provide real-time agronomic data, which is integral to Lindsay's FieldNET remote irrigation management platform.
The collaboration is expected to bolster both companies' leadership in the agricultural technology market. Lindsay's investment will accelerate water management innovations, expand global reach, and offer solutions to conserve natural resources. Randy Wood, President and CEO of Lindsay, emphasized the investment's role in enhancing the partnership and driving innovation.
Gottfried Pessl, CEO & Founder of Pessl, expressed enthusiasm about the investment's potential for innovation and the integration with Lindsay's agtech product suite. The synergy between METOS hardware and software solutions and Lindsay's technologies has already shown promising results for farmers worldwide.
Lindsay Corporation, established in 1955, has been a pioneer in developing solutions to meet the food, fuel, fiber, and transportation demands of the growing global population. The company's family of irrigation brands includes Zimmatic, FieldNET, FieldWise, and FieldNET Advisor, among others.
Pessl Instruments, with nearly four decades of experience, offers a range of wireless, solar-powered monitoring systems under the METOS brand. These systems are versatile, serving various industries and purposes across different climate zones.
This strategic investment is subject to customary closing conditions, including regulatory approvals. The information is based on a press release statement.
InvestingPro Insights
Lindsay Corporation (NYSE: LNN) has recently made headlines with its strategic investment in Pessl Instruments, signaling confidence in the agricultural technology sector. This partnership is poised to leverage Lindsay's experience in irrigation with Pessl's IoT capabilities to deliver enhanced solutions to farmers globally. As investors consider the implications of this move, here are some insights derived from InvestingPro's data and tips:
InvestingPro Data highlights Lindsay Corporation's financial health and market position. With a market capitalization of approximately $1.27 billion and a Price/Earnings (P/E) ratio of 18.44, the company presents itself as an established player in the market.
The P/E ratio, slightly adjusted to 18.34 for the last twelve months as of Q1 2024, indicates a stable earnings outlook. Moreover, the company's revenue for the same period stands at $659.28 million, though it has seen a decrease of 15.56% compared to the previous year.
InvestingPro Tips further enrich the narrative, indicating that Lindsay Corporation has a solid track record of financial prudence and shareholder returns. The company holds more cash than debt, suggesting a strong balance sheet.
Moreover, it has raised its dividend for 21 consecutive years and maintained dividend payments for 29 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent performance is complemented by the fact that analysts predict the company will be profitable this year and that it has been profitable over the last twelve months.
Investors looking to delve deeper into Lindsay Corporation's prospects can explore more InvestingPro Tips by visiting https://www.investing.com/pro/LNN. There are additional tips available that could provide further insights into the company's performance and potential. For a more comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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