German conglomerate BayWa AG has announced plans to take over a 100 per cent stake in the PC-Agrar group of companies, subject to approval by antitrust authorities.
The company, based in the German state of Bavaria, provides software solutions and integrated services for process-controlled operations management in agriculture (smart farming). The acquisition is to apply retrospectively as at 1 January 2015.
“Given that the almost revolutionary challenges of ‘Industry 4.0’ also extend to the agricultural sector, this acquisition is BayWa’s way of arming itself for the digital future,” CEO Klaus Josef Lutz said, emphasising the significance of the takeover.
Farm management solutions are developing at an increasing speed and BayWa, in its capacity as a trading company, must also rise to the challenge of continuing to provide services and sales from a single source in the field of agriculture, he added.
At tomorrow’s (16 January) BayWa AG investor conference in Berlin, Lutz will also say: “In the digital age, we intend not only to position ourselves between manufacturers and customers as an independent partner of agriculture, as we have in the past, but also to strive for a leading position in this field. To do so, we need – first and foremost – the necessary expertise. PC-Agrar gives us a platform to provide proven software systems and advance them in an integrative manner.”
Agriculture is facing constantly rising demands when it comes to increasing productivity and sustainability, and operations management is growing ever more complex. In future, BayWa intends to develop solutions for farmers for them to take advantage of the benefits smart farming offers – regardless of the machines and operating resources they use or the size of their operations, according to Lutz.
Customer surveys reveal that owners of smaller farms are particularly uncertain whether investing in digitisation is worthwhile and tend to perceive the complexity of the issue as a problem. This is where BayWa sees an opportunity to combine services and sales in a digital environment:
“The development towards digital farms is currently picking up steam. BayWa plans to take the lead by paving the way and accompanying modern agriculture along its path, no matter how large or small those farms are,” Lutz stressed.
“In light of the growing IT demands in the field of agriculture and the corresponding necessity to invest, PC-Agrar has found an ideal partner in BayWa. The sale of PC-Agrar to the trading and services company is the logical next step towards providing a future-oriented digital information platform for all farmers that covers all manufacturers,” Josef Fritz said on behalf of PC-Agrar GmbH, explaining the reasons for the sale.
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