- CNH Industrial NV (NYSE: CNHI) announced it is buying Augmenta. These are the details.
CNH Industrial NV (NYSE: CNHI) announced it is buying Augmenta to accelerate the growth of its innovative Sense & Act technology. Augmenta was a previous CNH Industrial Ventures investment and a strategic partner for CNH Industrial.
Sense & Act tasks are based on sensor-detected data during the spraying process where protection solutions are applied to crops both before and after harvest. And this technology gives machines selective spraying capabilities which precisely directs and regulates spray volume.
Augmenta’s work in this area includes the development of a multispectral camera and software that monitors a machine’s operating environment and acts directly via the device. And this increases yield for customers, boosts sustainability by eliminating unnecessary chemical and fertilizer usage, and most importantly reduces application time, effort, and input costs. Plus the savings in herbicides, fungicides, plant growth regulators, and fertilizers represent the most significant value pool for this technology.
Augmenta will operate within the Raven brand, as a subset of our precision technology portfolio. And it will maintain its existing employees and offices in Greece and the USA. CNH Industrial will acquire Augmenta Holding SAS at an enterprise value of $110 million, subject to customary adjustments. CNH Industrial held an existing 10.5% minority stake in the business prior to the transaction announced today, which will be funded with available cash on hand. Closing is expected to occur in the first quarter of 2023, subject to the satisfactory completion of customary closing conditions and receipt of regulatory approvals.
KEY QUOTES:
“Our work with Augmenta has brought increasing benefits to our customers’ operations. What began as a minority investment in their potential, now culminates in us adding this proven tech excellence directly to our sprayer offering. This is an important development for our Agriculture business that will further support our dealers by differentiating our equipment through value-added technology.”
- Derek Neilson, President Agriculture at CNH Industrial
“Augmenta’s technology will expedite development of our broader ‘Sense & Act’ capabilities to create value for our customers.”
- Parag Garg, Chief Digital Product Officer
