Publicly-traded AgJunction, which is registered in Calgary but based at Scottsdale, Ariz., said Thursday its board has unanimously approved Kubota’s 75-cents-per-share proposal and recommended shareholders vote in favour.

AgJunction would be taken private under this deal and its common shares delisted from the TSX.

The company makes guidance and autosteering hardware and software products for precision agriculture, including systems for original equipment manufacturers (OEM) and the Wheelman brand of after-market autosteer systems for farmers.

The company’s Canadian roots date back to 1990, when it launched under the name Canadian Systems International (CSI). Up until 2018 it owned the Outback Guidance aftermarket positioning and autosteer technology business.

AgJunction, in a release, said farm equipment automation is “rapidly advancing with increasing investment and consolidation” — but adoption of new automation calls for “tighter vehicle integration and large-scale distribution.”

Kubota’s proposed deal, AgJunction said, is the best option given “current industry, economic and capital markets conditions as well as (the) existing strategic relationship between AgJunction and Kubota.”

AgJunction board chair Lori Ell, in the same release, said the deal is “expected to accelerate the execution of AgJunction’s business plan, enhance access to additional customers and markets (and) provide efficiencies from greater scale.”

The deal with Kubota, Ell said, also “allows the opportunity for the retention of many AgJunction employees in the go-forward entity.”

The deal is subject to approval from AgJunction shareholders, who are expected to vote on the matter at a meeting next month, and from Alberta’s Court of Queen’s Bench after that.

Separately on Tuesday (Oct. 12), Kubota announced a “collaboration research agreement in the field of smart agriculture” with California-based Topcon Positioning Systems.

That agreement would see the two companies “work collaboratively to move forward with research and development into smart agriculture in a wide range of fields.”

Those fields, Kubota said, include “collecting and managing agronomic data that utilizes various sensors, and solutions for productivity improvements through automation utilizing big data.” — Glacier FarmMedia Network

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Regina-based Brandt announced Tuesday it has closed its previously-announced deal to buy the assets of GeoShack Canada — two weeks after Dallas-based GeoShack declared that “a mutually beneficial deal… has not been attained.”

GeoShack has been the “long-time exclusive supplier” for Topcon Positioning Systems equipment in Ontario, including sales, service, and rentals of GPS and other equipment for the ag, construction, survey and engineering industries, through locations in Toronto, Ottawa and London.

California-based Topcon’s agricultural products include precision seeding, spraying and harvest equipment as well as autosteer and guidance systems.

Brandt, which already had a “pre-existing Topcon footprint” in Western and Atlantic Canada and last month made a deal with Topcon for distribution rights to the Quebec market, is now “the exclusive dealer for Topcon Positioning Systems and other complimentary tools and technology for the entire Canadian market.”

GeoShack, in a separate release Monday, said the deal also makes Brandt “likely Canada’s largest geopositioning technology supplier.” Its staff in Ontario are employed by Brandt “effective immediately,” GeoShack added.

“The combination of… GeoShack’s Ontario-based team and Brandt’s national infrastructure is going to be powerful for our Ontario customers,” GeoShack president Scott Beathard said in the same release.

“We’ve worked very hard to build strong relationships and a solid operation in the Ontario market over the last 16 years and we’re completely confident that Brandt will continue to grow the business and provide unmatched value for clients in that market.”

“We’ve worked hard to make this a great deal for our survey, engineering and construction customers in Ontario and Quebec,” Brandt CEO Shaun Semple said Tuesday.

“Brandt’s 56 locations from coast to coast to coast coupled with GeoShack’s strategic locations in Ontario will position Brandt, with the industry’s largest team of experts, to provide an unmatched degree of aftersales support,” Brandt said.

Brandt’s deal with GeoShack parent Ultara Holdings also includes Inteq Distributors, a “complementary business” with a distribution centre at Exeter, Ont. providing sales and service on “an extensive selection of construction instruments, optical equipment, survey supplies and accessories.”

Both the GeoShack and Inteq brands and operations in Ontario will be “transitioned” into Brandt Positioning Technology, the company said.

Neither Brandt nor GeoShack said exactly why the deal had appeared to die late last month, nor did either company say what had happened to revive it. Privately-held Brandt did not disclose the financial terms of the final deal.

Formed in 1995, GeoShack expanded to Ontario in 2003 when it merged the Toronto- and Exeter-based businesses of Laserline Ontario with those of three other independent distributors in Texas, Ohio and Michigan.

Outside Ontario, GeoShack will still have 16 U.S. locations in eight states. –– Glacier FarmMedia Network

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The Regina-based Brandt Group announced Wednesday it has reached a deal to buy the assets of GeoShack Canada Co. and the Canadian assets of Inteq Distributors, both owned by Dallas-based Ultara Holdings.

In Ontario, GeoShack is billed as the “long-time exclusive supplier” for Topcon Positioning Systems equipment, including sales, service, and rentals of GPS and other equipment for the ag, construction, survey and engineering industries, through locations in Toronto, Ottawa and London.

California-based Topcon’s agricultural products include precision seeding, spraying and harvest equipment as well as autosteer and guidance systems.

Formed in 1995, Geoshack expanded to Ontario in 2003 when it merged the Toronto- and Exeter-based businesses of Laserline Ontario with those of three other independent distributors in Texas, Ohio and Michigan. Outside Ontario it will still have 16 U.S. locations in eight states.

The GeoShack deal, on top of Brandt’s “pre-existing Topcon footprint” in Western and Atlantic Canada — and a new separate agreement in which Topcon has assigned distribution rights to Brandt for the Quebec market — makes Brandt “the exclusive dealer for Topcon construction and geopositioning products for all of Canada.”

“The territorial expansion of the Brandt operation will scale our presence and penetration in Canada,” Eduardo Falcon, general manager for Topcon’s geopositioning group, said in a separate release.

Brandt’s other acquisition, Inteq Distributors, is a “complementary business” with a distribution centre at Exeter, Ont. providing sales and service on “an extensive selection of construction instruments, optical equipment, survey supplies and accessories.”

The deal with Ultara is expected to close June 26, giving Brandt what it calls a “comprehensive retail footprint to supply premium geopositioning equipment to Canadian construction and forestry contractors, engineering firms and survey companies.”

“We are very excited to add this highly respected team along with these key product lines and support services for our customers in Ontario and Quebec,” Brandt CEO Shaun Semple said in Wednesday’s release.

“The combination of the GeoShack team and Brandt’s national infrastructure is going to be powerful for Ontario customers,” GeoShack president Scott Beathard said in the same release.

“We’ve worked very hard to build strong relationships and a solid operation in the Ontario market over the years and we’re completely confident that Brandt will continue to grow the business and provide unmatched value for clients in that market.” — Glacier FarmMedia Network

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Kansas-based AgJunction announced Monday it has sold the Outback assets to Hemisphere GNSS, a Scottsdale, Ariz. company owned by Chinese firm Beijing UniStrong, for an undisclosed sum.

Outback — one of the positioning tech businesses which consolidated into what later became AgJunction — offers aftermarket guidance and autosteering systems for about two dozen ag equipment brands.

The sale would reunite Outback with Hemisphere GNSS, a sister company which AgJunction — known up until then as Hemisphere GPS — sold to Beijing Unistrong’s Canadian subsidiary for US$15 million in 2013.

The deal will give HGNSS the Outback Guidance brand; Outback’s Rebel autosteering product line; and AgJunction’s product development, sales, distribution and support facilities at Winnipeg and at Hiawatha, Kan., about 120 km northwest of Kansas City.

HGNSS will also get a “non-exclusive” license to certain AgJunction patents associated with the Outback business and “the majority” of the Outback workforce. The two companies have also agreed on another royalty-bearing, non-exclusive license deal for AgJunction intellectual property to be used in other HGNSS ag-related products.

AgJunction, meanwhile, will keep its other intellectual property and the staff working mainly at its engineering centres in Scottsdale and in Brisbane, Australia.

HGNSS, whose product lines are sold into the OEM, marine, machine control and guidance and L-band correction service markets, has been making a concerted push into the ag sector.

HGNSS CEO Farlin Halsey said the deal for the Outback assets will “significantly accelerate” that push and “allow stronger integration between Hemisphere’s core competency GNSS (global navigation satellite system) and Outback’s highly refined steering solutions.”

HGNSS, he said, is “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.”

HGNSS said it has seen “successful revenues and wide-reaching positive feedback in recent years” in OEM-focused ag products and “seeks to further integrate its high-precision GNSS positioning technology” with the Outback dealer network’s systems and services.

Outback Guidance’s customer support, sales and website will “remain as they currently operate” and its dealer network will not see any interruption during this transition period,” HGNSS said.

For AgJunction, the deal “will enhance our focus on our mission to expand autosteering to all farmers by simplifying our solutions and channels to market,” CEO Dave Vaughn said in a separate release.

Once the deal closes — expected sometime in AgJunction’s third fiscal quarter, pending the usual regulatory approvals — “our go-to-market distribution channels will be focused on our indirect channel partners — value-added resellers, original equipment manufacturers, and strategic intellectual property licensed partners — and our direct-to-farmer channel via Handsfreefarm.com,” he said.

AgJunction vice-president Bob Barjesteh, added that commercializing AgJunction’s intellectual property is “a vital component of our corporate strategy” and noted the new licensing deal with HGNSS follows a similar deal last month, with South Dakota-based precision ag tech firm Raven Industries.

The agreement with Raven was described at the time as a “mutually agreeable no-fault business solution,” which resolved a patent infringement suit AgJunction filed in January. — Glacier FarmMedia Network

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