Christchurch-based group CropLogic has signed a binding agreement to acquire a leading US agronomy services company.
CropLogic said the company, to be named in due course, is well known and highly regarded in its native Northwest region and more broadly across the North American agricultural industry.
“Not only will the acquisition provide CropLogic with revenue and immediate access to the lucrative North American agricultural industry, the nature of the business being acquired is such that it will immediately provide the company with a presence and a channel to further the grower and processor relationships in three of the key agricultural states in the USA,” said CropLogic chief executive Jamie Cairns.
CropLogic provides a predictive decision support system to growers, which includes daily prescriptions for applying water and nitrogen, along with rolling yield forecasts. Successful trials of the CropLogic system have been completed on potatoes in China, the US, Australia and New Zealand, with a full commercial rollout currently in process.
Earlier this year, the company announced it had successfully closed its offer on the Equitise crowd funding platform and had appointed Ventnor Capital as corporate advisors, in preparation for its anticipated listing on the Australian Securities Exchange (ASX).
Cairns said the soon to be completed acquisition aligned with the company’s global market entry strategy.
“In this case, we are also lucky to be acquiring a collective 50 years of agronomic experience and expertise represented by the principals alone, who will remain in the business,” Cairns explained.
“This acquisition ticks many boxes for us and both parties are excited with the plans for the upcoming few years and we consider it demonstrates CropLogic’s ability to execute the Company’s international growth strategy.”