HIAWATHA, KS, March 31, 2015 /CNW/ - (TSX:AJX) - AgJunction Inc. ("AgJunction" or "the Company"), a leading provider of innovative hardware and software solutions for precision agriculture, today announced it has signed an agreement for the sale of its Cloud Services division to EFC Systems, Inc. ("EFC"), of Brentwood TN for $3.25 million in cash less net liabilities of approximately $0.8 million.
AgJunction's Cloud Services division employs 15 people and generated revenue of $2.4 million in 2014. It operates in State College, PA where it supports over 2,000 agricultural retail locations through its suite of precision agronomy software. The transaction has been finalized and all Cloud Services business activities and related costs have been transferred as of March 31, 2015. All 15 employees of AgJunction Cloud Services have joined EFC Systems.
Divesting the division is aligned with AgJunction's strategy to focus all of its resources on delivering the most accurate, innovative and reliable steering solutions through OEM channels globally.
"Over the past two years, by prioritizing our resources, we have successfully positioned our business around our core strengths in machine control," stated Rick Heiniger, President and CEO of AgJunction. "Under its new ownership, the Cloud Services Division can better receive the necessary level of resources dedicated specifically toward agricultural software."
EFC Systems is a leader in providing work-flow solutions for both agricultural retailers and wholesalers. Adding precision agronomy software applications to EFC's portfolio expands their retail offering, and offers the opportunity to integrate complementary platforms.
At EFC Systems, our vision is to provide integrated ERP and Precision Agronomy Solutions to our clients," said Ernie Chappell, President of EFC Systems. "Agricultural retailers continue to express the desire for a solution that works across their accounting system, supply chain and agronomy centers, and we are very excited to be adding this platform to our suite of products," he added.
About EFC Systems
EFC Systems delivers innovative software solutions throughout the entire Agribusiness supply chain. EFC employs modern technologies and anticipates industry trends to provide its client partners with the tools and insight they need to manage their business. The Company's two main platforms, Merchant Ag and Vanguard serve agricultural retailers and wholesalers nationwide with comprehensive solutions comprised of financial, accounting, agronomy, feed manufacturing, point of sale, wholesale distribution, and grain contracting modules. The Company employs 68 full time professionals with headquarters in Brentwood, TN. For more information, go to www.efcsystems.com
AgJunction provides innovative hardware and software applications for precision agriculture worldwide. AgJunction holds numerous patents and markets its products and services under leading brand names including Outback Guidance®, Satloc®, and AgJunction® Cloud Services. AgJunction supports advanced farming practices and enables seamless data connectivity among growers and their agricultural service providers. Headquartered in Hiawatha, Kansas, AgJunction has facilities in Arizona, Winnipeg, and Queensland, Australia. AgJunction is listed on the Toronto Stock Exchange (TSX) under the symbol "AJX." For more information, go to www.agjunction.com.
SOURCE Agjunction Inc.
For further information: Rick Heiniger, President and CEO, AgJunction, RHeiniger@agjunction.com; Ernie Chappell, President, EFC Systems, EChappell@efcsystems.com; Cory Pala, Investor Relations, (416) 657-2400, 1-877-657-5276, Cory.Pala@evestor.com