CNH Industrial, the Italian-American producer of heavy machinery, has acquired Augmenta, a French origin company for agricultural automation. This acquisition will improve CNH Industrial’s innovative Sense & Act technology, which assists farming productivity. The deal’s enterprise value is US$110 million with few usual adjustments. Previously, CNH Industrial was a strategic partner and investor of Augmenta.
Derek Neilson, the President Agriculture at CNH Industrial, quoted, “Our work with Augmenta has brought increasing benefits to our customers’ operations. What began as a minority investment in their potential, now culminates in our adding this proven technical 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.”
Before the announcement of the deal, CNH Industrial already had 10.5 percent of the company. The rest of the payment is expected to be paid via the existing cash reserves. This deal is expected to close in the first quarter of 2023, pending the fulfilment of regulatory approvals and necessary closing conditions.
Parag Garg, the Chief Digital Product Officer, CNH Industrial, “Augmenta’s technology will expedite the development of our broader ‘Sense & Act’ capabilities to create value for our customers”. On the basis of sensor data during the spraying process, this technology assists the machines to spray as per the needs and applies crop protection solution to the pre and post harvest.
Augmenta has innovated a multispectral camera and software, which can control and monitor the operating environment of a machine. This innovative technology will help the consumers to boost the crop yield, decrease the use of fertilisers and chemicals, save time and labour costs. Moreover, the technology’s biggest value pool generates from savings in fungicides, herbicides, fertilisers and plant growth regulators.
Under the portfolio of precision technology, Augmenta will be a part of the brand, Raven. It will keep the present offices and employees in the USA and Greece.