Trimble and AGCO have announced a joint venture to better serve farmers with factory fit and aftermarket applications in the mixed fleet precision agriculture market.

The parties will enter into a long-term Supply Agreement, Technology Transfer and License Agreement, and Positioning Services Agreement to govern the licensing of Trimble trademarks and technology for use by the JV after the expiration of the Supply Agreement.

The transaction is expected to result in significant benefits to Trimble, including a higher mix of software, services, and recurring revenue, over in net proceeds after tax used to repay debt and repurchase shares, and a comprehensive plan with a major OEM provider reducing uncertainties from the Trimble aftermarket channel transition.