Valmont Industries has entered into a definitive agreement to acquire Prospera Technologies Inc. The transaction, valued at approximately $300 million, is expected to close in the second quarter of 2021.
Valmont is a global provider of engineered products and services for infrastructure and irrigation equipment. Prospera is a privately held Israeli-based artificial intelligence company, focused on machine learning and computer vision in agriculture.
Building on accomplishments
Since 2019, Valmont and Prospera have integrated AI technologies with center pivot irrigation to develop real-time crop analysis and anomaly detection solutions. The partnership is monitoring five million acres in 2020 – the original estimate was one million acres – and twice as many growers are using the service compared to 2019. Grower adoption is expected to double in 2021.
“Today’s acquisition is a testament to our commitment to make the farm more efficient and increase productivity while dramatically improving sustainability. Building on the successful partnership with Prospera, we are accelerating our commitment to provide services that enhance the lives of our customers and the communities in which they operate, as well as finding new ways to achieve higher crop yields using less – land, water, chemicals, fertilizers, fuel and time,” said Valmont President and Chief Executive Officer Stephen G. Kaniewski.
“Our strategic partnership has demonstrated the unique combined value of Prospera’s capabilities and Valmont’s agricultural expertise and market leadership,” said Prospera Co-Founder and Chief Executive Officer Daniel Koppel. “This combination is the fastest way to scale impactful ag-tech solutions. We are excited about the future and the opportunity to continue to further our work to feed an expanding global population through our machine learning technologies that allow growers to make more informed, efficient and scientific decisions.”
Accelerating industry leadership
The transaction will create the largest global, vertically integrated AI company in agriculture. Using the pivot as the digital data hub, this solution brings advanced agronomy and unprecedented visibility to the field, enabling the grower to take immediate action to remediate issues. The combination will create the first commercially available subscription model of its kind, providing innovative and disruptive solutions to help growers lower costs, increase yields, use less land and save time.
Prospera's senior leadership team and 90 colleagues will remain with the business. Senior leadership are headquartered in Austin, Texas.
Transaction terms and financing
Valmont will finance the transaction through a combination of funds from available cash and the company’s revolving credit facility. Restricted stock retention awards will be granted to Prospera employees.
The transaction, which is subject to customary closing conditions, will be reported within Valmont’s Irrigation segment. Further details will be communicated at Valmont’s Virtual Investor Day on May 20, 2021.