(By Balachander) Monsanto Co. (NYSE:MON) boosted its seed prescription offering through the acquisition of planting technology developer Precision Planting Inc. for upto $250 million.
St. Louis, Missouri-based Monsanto said the deal will complement its offering of science-based agronomic seed prescriptions with next-generation precision equipment to help farmers boost yields and reduce risk.
Founded in 1993, Tremont, Illinois-based Precision Planting offers services that help farmers plant, harvest and analyze data from each field to improve yield and productivity.
The acquired business will become part of Monsanto's Integrated Farming Systems unit that uses agronomic practices, seed genetics and on-farm technology to deliver optimal yield to farmers while using fewer resources.
Monsanto operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces corn, soybean, canola, and cotton seeds, as well as vegetable seeds. The Agricultural Productivity segment offers glyphosate-based herbicides for agricultural, industrial, ornamental, and turf applications.
The transaction is expected to close this summer.
MON shares, which have been trading in the 52-week range between $58.89 and $83.94, ended Tuesday's regular trading at $71.30.