The board of directors for Kubota of Japan has given its approval to a deal to buy AgJuction of Arizona for $91 million Cdn.
Board chair Lori Ell said "we are pleased to announce this transaction, which offers our shareholders a compelling opportunity to monetize their investment at an attractive valuation and significant premium to the current and historical trading price of the AgJunction shares.
“The Transaction is also expected to accelerate the execution of AgJunction's business plan, enhance access to additional customers and markets, provide efficiencies from greater scale and allows the opportunity for the retention of many AgJunction employees in the go-forward entity," she said.
AgJunction specializes in automation.
AgJunction shareholders will have a special meeting in November to vote on the deal which requires Canadian government approval.
AgJunction markets its guidance and autosteering products under brand names including Novariant, Wheelman, Whirl and Handsfreefarm.
Kukota markets agriculture, turf and construction equipment in more than 120 countries.