US: Hemisphere GNSS announced the signing of a definitive agreement to purchase all of the assets of the Outback Guidance (Outback) business from AgJunction, Inc. (TSX:AJX) along with a new technology licensing agreement. The transaction is expected to close in the 3rd quarter, contingent on normal regulatory approvals. This acquisition aligns well with Hemisphere’s continued push into the global agriculture market. In addition to the included IP licenses for business into the dealer channel, a second license was signed to allow agriculture steering solutions sales into OEM (original equipment manufacturer), VAR (value-added reseller), and all other segments of the agriculture supply chain.
As a result of these agreements, Hemisphere will assume ownership of the Outback Guidance assets, including channel, infrastructure and trademarks. Additionally, licenses to intellectual property and related technology have been executed. Also included are two product development, sales, and support facilities, including personnel, located in Hiawatha, KS, USA and Winnipeg, MB, Canada.
“The decision to acquire the Outback Guidance business will significantly accelerate Hemisphere’s expansion into the global agriculture market and allow stronger integration between Hemisphere’s core competency GNSS and Outback’s highly refined steering solutions,” said Farlin Halsey, President & Chief Executive Officer of Hemisphere GNSS. “We are very pleased to be bringing on board additional seasoned personnel with strong agriculture domain experience, a strong product line with deeply embedded agricultural technology and a well-accepted, reputable brand in Outback. We will also be bringing back together many years of history and legacy between the two organizations.”
The addition of Outback Guidance represents Hemisphere’s continued effort to make significant investments to expand its presence in the global agricultural market. Hemisphere has seen successful revenues and wide-reaching positive feedback in recent years with its OEM focused agriculture products. Hemisphere seeks to further integrate its high-precision GNSS positioning technology via systems and services offered by the Outback Guidance dealer network.
The Outback Guidance channels of communication including customer support, sales, and website will remain as they currently operate. The Outback Guidance dealer network will not see any interruption during this transition period.