Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

CNH Industrial buys Augmenta to boost crop treatment accuracy

Published 03/13/2023, 08:15 AM
Updated 03/13/2023, 08:21 AM
© Reuters. FILE PHOTO: Flags with CNH Industrial logo are pictured outside CNH Industrial building in Turin, Italy, February 5, 2020. REUTERS/ Massimo Pinca
RAVN
-
CNHI
-

MILAN (Reuters) - Italian-American vehicle maker CNH Industrial (NYSE:CNHI) has acquired U.S. company Augmenta, valuing its strategic partner at $110 million, in a bid to help farmers harness technology to increase the effectiveness of crop spraying.

CNH, a maker of farm machinery and construction equipment sees so-called precision technologies as a key competitive feature in its agriculture business, its largest one.

The group, whose revenue topped $25 billion in 2022, has said it was pursuing an estimated contribution from precision technology components of $1 billion to this year's net sales.

The deal is aimed at speeding up development of Augmenta's technologies based on sensor-detected data during the spraying process, CNH said in a statement.

Augmenta's work in this area also includes the development of a multispectral camera and software that monitors a machine's operating environment and acts directly via the machine, it added.

It offers farmers savings in the amounts of herbicide, fungicide, fertiliser and other plant growth treatments.

CNH already owned a 10.5% stake in Augmenta through its venture capital arm CNH Industrial Ventures.

"This is an important development for our Agriculture business that will further support our dealers by differentiating our equipment through value-added technology," said CNH's Chief Digital Product Officer Parag Garg.

© Reuters. FILE PHOTO: Flags with CNH Industrial logo are pictured outside CNH Industrial building in Turin, Italy, February 5, 2020. REUTERS/ Massimo Pinca

Augmenta will operate within the group's U.S. unit Raven (NASDAQ:RAVN) and will maintain its existing employees and offices in Greece and U.S..

The deal, which will be funded with available cash, is expected to be closed in the first quarter, CNH Industrial said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.