Enter PTx Trimble: AGCO and Trimble Finalize JV

Global agriculture machinery leader AGCO Corporation (NYSE: AGCO) and leading technology company Trimble (NASDAQ: TRMB) have announced the closing of their joint venture transaction on April 1, 2024. The new venture, named PTx Trimble, promises to revolutionize the precision agriculture market by providing solutions for both factory fit and retrofit applications across mixed-fleet operations.

The collaborative venture combines AGCO’s JCA Technologies and Trimble’s precision agriculture business. AGCO has acquired a majority stake of 85% in the new entity, PTx Trimble, with Trimble holding the remaining 15%. The financials of PTx Trimble will be consolidated within AGCO’s financial statements moving forward.

Highlighting the company’s rationale for the venture, Eric Hansotia, AGCO’s Chairman, President and CEO stated, “Farmers worldwide need technologies that support them to be more productive and profitable while minimizing the environmental impact of their operations. PTx Trimble will provide farmers greater access to next-generation precision ag tools, no matter what brands of tractors and implements they operate.” The formation of PTx Trimble also enhances AGCO’s range of technology offerings in areas such as guidance, autonomy, precision spraying, connected farming, data management and sustainability.

According to Robert Painter, Trimble’s President and CEO, the venture is good news for farmers. He said, “Farmers are the real winners here. By combining our expertise and resources through this JV, we aim to accelerate the pace of innovation. With a focus on open technologies, customers will benefit from tech solutions available to farmers across a broad range of tractor and implement brands.”

Financial projections anticipate that AGCO’s consolidated precision agriculture revenue will exceed $2.0 billion by 2028. The joint venture is also expected to drive AGCO’s revenue growth, adjust the operating margin profile and boost adjusted earnings per share during the first full year post-close. Financing of the venture was secured through a combination of $1.1 billion in recently issued senior unsecured notes, a $500 million term loan facility, additional borrowings, and available cash.

For more information, visit Trimble News Release.