AgJunction to Acquire Novariant

March 20, 2015  - By
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Precision-agriculture company AgJunction has agreed to acquire precision-steering company Novariant, according to a joint press release.

AgJunction holds numerous patents and markets its products and services under the brand names Outback Guidance, Satloc and AgJunction Cloud Services. AgJunction supports advanced farming practices and enables seamless data connectivity among growers and their agricultural service providers. Headquartered in Hiawatha, Kansas, AgJunction has facilities in Arizona, Pennsylvania, Winnipeg, and Queensland, Australia.

Based in Silicon Valley, Novariant’s steering solutions are used in more than 60 countries. With 55 employees worldwide, Novariant generated revenues of approximately $30 million in 2014. Novariant offers interoperable auto-steer capabilities to original equipment manufacturers (OEMs) and value-added resellers worldwide with more than 750 unique platform-install kits and more than 30,000 systems in the field.

According to the statement, when combined the two companies will be better positioned to achieve market objectives through leveraging:

  • A larger presence with more resources
  • A broader OEM partner list
  • One of the precision agriculture industry’s most comprehensive intellectual property portfolios, providing increased IP protection for OEM partners
  • Increased R&D capability and efficiency
  • Complementary customers, market geographies and distribution channels
  • Reductions in operating redundancy to further improve profitability.

Completion of the transaction is expected to take place this summer.

“Novariant established itself as a pioneer in guidance and auto-steer technologies over 20 years ago,” said Dave Vaughn, CEO of Novariant. “Most recently, Novariant has sharpened its focus on precision agriculture and has positioned its offerings to address a major shift in our industry from after-market channels to factory-installed solutions.”

“A shift like this occurs only once during the lifecycle of a technology, and great companies can be created by accelerating and innovating at the right time,” added Vaughn. “At Novariant we believe this is a transformational opportunity, and AgJunction is the right partner.”

As global machine manufacturers increasingly target the integration of auto steer technologies at the factory level, the combined companies can bring advanced levels of machine automation to both current and future OEM clients faster and at lower cost.

“The combination of Novariant and AgJunction creates an exciting opportunity for our company, for our customers, and for our shareholders,” said Rick Heiniger, president and CEO of AgJunction. “This merger extends the reach and influence with which we pursue a common passion — delivering the most accurate, innovative and reliable steering solutions in the world.”

Once the merger is complete, the combined company will have approximately 200 employees worldwide and will be headquartered at Novariant’s corporate headquarters in Silicon Valley. The combined company plans to maintain additional offices in Kansas, Arizona, Pennsylvania, Canada and Australia.

Dave Vaughn, CEO of Novariant, will be appointed CEO of the combined company, with current AgJunction CEO Rick Heiniger serving as senior advisor to the CEO. In addition, Wes Dittmer will continue to serve as the combined company’s CFO.

 

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