MONSANTO Co. announced Oct. 2 that it has signed a definitive agreement to acquire The Climate Corp. for a cash purchase price of approximately $930 million.
The acquisition is subject to customary closing conditions and is expected to close in the first quarter of Monsanto's 2014 fiscal year.
The Climate Corp. was founded in 2006 by a team of software engineers and data scientists. Since that time, the company has built an advanced technology platform for the agriculture industry that combines hyper-local weather monitoring, agronomic data modeling and high-resolution weather simulations to deliver a suite of full-season monitoring, analytics and risk management products.
The Climate Corp. has a core set of support tools to benefit farmers that include products to help boost yields on existing farmland and better manage risks that occur throughout a crop season. The company 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 Climate Corp. is focused on unlocking new value for the farm through data science," said Hugh Grant, Monsanto chairman and chief executive officer. "Everyone benefits when farmers are able to produce more with fewer resources. The Climate Corp. 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."
The acquisition is expected to expand on The Climate Corp.'s leadership in the area of data science and will immediately expand both the near-term and long-term growth opportunities for Monsanto's business and Integrated Farming Systems platform, according to the announcement.
"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, CEO of The Climate Corp. "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."
Following the acquisition, The Climate Corp. will operate its business to retain its distinct brand identity and customer experience. The company will continue to maintain headquarters in the Silicon Valley of California, and all of its employees will be offered continued employment.