St. Louis / MO. (moc) Monsanto Company announced it has signed a definitive agreement to acquire The Climate Corporation for a cash purchase price of approximately 930 million USD. The acquisition will combine The Climate Corporation´s expertise in agriculture analytics and risk-management with Monsanto´s R+D capabilities, and will provide farmers access to more information about the many factors that affect the success of their crops. The companies´ combined capabilities will support greater productivity while utilizing the planet´s finite resources more precisely.
The acquisition is expected to expand on The Climate Corporation´s leadership in the area of data science, which represents the agriculture sector´s next major breakthrough, and will immediately expand both the near- and long-term growth opportunities for Monsanto´s business and Integrated Farming Systems platform.
«The Climate Corporation is focused on unlocking new value for the farm through data science», said Hugh Grant, chairman and chief executive officer for Monsanto. «Everyone benefits when farmers are able to produce more with fewer resources. The Climate Corporation team brings leading expertise that will continue to greatly benefit farmers and their bottom-line, and we want to expand upon this tremendous work and broaden their reach to more crops and more world areas. We look forward to working closely with our distribution partners and others in the agricultural industry to bring this suite of information resources to the farm».
The Climate Corporation was founded in 2006 by a highly successful team of software engineers and data scientists formerly with Google and other leading Silicon Valley technology companies. Since that time, the company has built the agriculture industry´s most advanced technology platform combining hyper-local weather monitoring, agronomic data modelling, and high-resolution weather simulations to deliver a complete suite of full-season monitoring, analytics and risk-management products.
«Farmers around the world are challenged to make key decisions for their farms in the face of increasingly volatile weather, as well as a proliferation of information sources», said David Friedberg, chief executive officer for The Climate Corporation. «Our team understands that the ability to turn data into actionable insight and farm management recommendations is vitally important for agriculture around the world and can greatly benefit farmers, regardless of farm size or their preferred farming methods. Monsanto shares this important vision for our business and we look forward to creating even greater experiences for our farmer customers».
The Climate Corporation has a core set of support tools to benefit farmers. These include products that help them boost yields on existing farmland and better manage risks that occur throughout a crop season. The Climate Corporation will continue to offer its current risk-management products including an online service that provides crop planning, monitoring, and recommendations, and insurance offerings through its network of independent agents.
The acquisition is subject to customary closing conditions and is expected to close in the first quarter of Monsanto´s 2014 fiscal year. Following the acquisition, The Climate Corporation will operate its business to retain its distinct brand identity and customer experience. The company will continue to maintain headquarters in Silicon Valley and all of its employees will be offered continued employment.