HIAWATHA, KS, Aug. 20, 2018 /CNW/ - (TSX: AJX) — AgJunction Inc. (TSX: AJX), the Autosteering Company™, is announcing the sale of the assets of its Outback Guidance (Outback) business to Hemisphere GNSS (HGNSS), along with a new technology licensing agreement. The transactions will allow AgJunction to focus on its core strategy to grow the market for autosteering.
The asset sale of Outback includes the Outback Guidance® brand, the REBEL™ autosteering products, and AgJunction's Hiawatha, Kansas and Winnipeg, Canada facilities. HGNSS will also receive a non-exclusive license to certain AgJunction patents associated with the Outback business. HGNSS will take over the relationships with the Outback independent dealer network, and the majority of the Outback workforce are expected to transition to HGNSS. AgJunction will retain the intellectual property and engineering staff concentrated in two engineering centers of excellence in Scottsdale, Arizona, and Brisbane, Australia.
Additionally, AgJunction and HGNSS have entered into a royalty-bearing, non-exclusive license agreement for AgJunction intellectual property used in other HGNSS products. Both transactions are expected to close in the third quarter. The specific terms of the transactions are confidential.
"As the world's leading autosteering company, these transactions will enhance our focus on our mission to expand autosteering to all farmers by simplifying our solutions and channels to market," said Dave Vaughn, president and CEO of AgJunction. "Upon completion of the transaction, 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."
Regarding the technology license, Bob Barjesteh, vice president of intellectual property, M&A and general counsel for AgJunction said: "The commercialization of AgJunction's intellectual property is a vital component of our corporate strategy. This licensing agreement with HGNSS comes on the heels of our recent deal with Raven Industries, further substantiating the strength of our industry-leading intellectual property portfolio."
AgJunction Inc., the Autosteering Company™ is a global leader of advanced guidance and autosteering solutions for precision agriculture applications. Its technologies are critical components in over 30 of the world's leading precision Ag manufacturers and solution providers and it holds over 130 fundamental steering and machine control patents. AgJunction markets its solutions under leading brand names including Novariant®, Wheelman™, Whirl™ and Satloc® and is committed to advance its vision by bringing affordable hands-free farming to every farm, regardless of terrain or size. AgJunction is headquartered in Hiawatha, Kansas, with facilities in Silicon Valley, Arizona, Canada, and Australia, and is listed on the Toronto Stock Exchange (TSX) under the symbol "AJX." For more information, please go to www.agjunction.com.
Reader Advisory and Note Regarding Forward Looking Information
This press release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of AgJunction as of the date of this news release, unless otherwise stated. The use of any of the words "expect," "anticipate," "may," "will," "should," "believe," "intends" and similar expressions are intended to identify forward-looking information. In respect of the forward-looking information, AgJunction has provided such information in reliance on certain assumptions that it believes are reasonable at this time. Readers should not place undue reliance on such forward-looking information contained in this press release since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any security which may be referenced herein.
SOURCE Agjunction Inc.
For further information: Media: Lisa Shields, Corporate Communications AgJunction, +1-480-399-0989, [email protected]; Investor Relations: Cody Slach, Liolios Managing Director, +1-949-574-3860, [email protected]