SIOUX FALLS, S.D. (AP) — CNH Industrial expects its $2.1 billion purchase of a South Dakota company will give it an edge in innovating autonomous technology in agriculture vehicles, the global manufacturer said Monday.
The Italian-American agriculture vehicle manufacturer said it has acquired 100% of the capital stock of Raven Industries Inc. headquartered in Sioux Falls, South Dakota, for $58 per share.
The transaction will be funded with available cash on hand, CNH Industrial said, with a sale to be finalized by the end of 2021.
The sale will position CNH Industrial to have a greater impact on the global agriculture equipment market by “adding strong innovation capabilities in autonomous and precision agriculture technology,” the company said in a statement.
“Precision agriculture and autonomy are critical components of our strategy to help our agricultural customers reach the next level of productivity and to unlock the true potential of their operations,” stated Scott Wine, CEO of CNH Industrial. “Raven has been a pioneer in precision agriculture for decades, and their deep product experience, customer driven software expertise and engineering acumen offer a significant boost to our capabilities.”
In April, Raven Industries acquired the intellectual property of a Massachusetts-based robotics company, Jaybridge Robotics, an early developer of automated agriculture technology,
Raven said it planned to use Jaybridge’s patents and information to continue developing its “driverless ag technology.”