Over $1.5 billion in net proceeds after tax used to repay $1.1 billion in debt and repurchase sharesĭe-risks Trimble's Channel Transition in the Agriculture Market Results in a higher mix of recurring revenue from 49% to 55% on a pro forma basis Results in a higher mix of software, services and recurring revenue from 66% to 72% on a pro forma basis Retains core GNSS IP and will continue to innovate and offer across served markets, including the JVĮnhances Financial Profile and Flexibility Reduces exposure to hardware-centric agriculture market while retaining highly recurring revenue Positioning Services business Streamlines portfolio and increases focus on priority growth areas The transaction is expected to result in significant benefits to Trimble, including: Transaction Expected to Result in a Stronger, More Focused Trimbleįollowing completion of the transaction, Trimble will continue to deliver its differentiated technologies at the intersection of the physical and digital worlds across its core businesses. "All of these touchpoints will result in our team being even more farmer focused." "The exclusive access to Trimble Ag products, combined with AGCO's existing Precision Ag offerings, accelerates AGCO's growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability," said Eric Hansotia Chairman, President and CEO of AGCO Corporation. We look forward to beginning a new chapter with AGCO to bring precision agriculture to both the factory and to the aftermarket." "Trimble has a rich history of forming and cultivating joint ventures with industry leaders such as Caterpillar, Nikon and Hilti and we are excited about this opportunity with AGCO and its family of leading brands. We believe a joint venture with AGCO, complemented by the successful mixed fleet approach that they have developed with their Precision Planting business model, can help us better serve farmers and OEMs together," said Rob Painter, Trimble's president and chief executive officer. "Farmers today are looking for mixed fleet solutions across their tractors and the implements that they use to most efficiently and sustainably feed the world. For dealers, it is expected to better serve farmers with a broad, complementary, and leading technology portfolio. For customers, the JV's technology is expected to offer seamless integration and connectivity across geographies, equipment brands and the crop life cycle. The JV will align two leading companies dedicated to serving farmers worldwide with cutting-edge technologies to help farmers drive productivity, efficiency and sustainability. In addition, the parties will enter into (i) a long-term Supply Agreement through which Trimble will provide the JV with key GNSS and guidance technologies ("Supply Agreement"), (ii) a Technology Transfer and License Agreement ("TTLA") to govern the licensing of Trimble trademarks and technology for use by the JV after the expiration of the Supply Agreement and (iii) a Positioning Services Agreement through which the JV will serve as a channel partner to Trimble for its positioning services in the agriculture market (collectively, the "Commercial Agreements").ĭelivering a Leading Portfolio of Agriculture Technologies Trimble will receive $2 billion in pre-tax cash proceeds plus a 15% stake in the JV. Under the terms of the JV, Trimble will contribute its precision agriculture business (" Trimble Ag") excluding certain Global Navigation Satellite System ("GNSS") and guidance technologies and AGCO will contribute its JCA Technologies business, which is a leader in the development of autonomous software for agricultural machines, implement controls and electronic system components. In aggregate, Trimble expects approximately $3 billion in value from the transaction from pre-tax cash proceeds, Trimble's 15 percent stake in the joint venture, and the related commercial agreements. Trimble and AGCO joint venture intended to accelerate innovation in the Agriculture industry.
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