St. Louis, MO, United States (4E) – Monsanto Co. announced that it will buy The Climate Corp. for around $930mn, a move that will enable the world’s biggest seed company to provide farmers with data and technology that will help manage risk and boost yields.
Climate Corp.’s acquisition will allow the world’s biggest seed company to sell a broad range of tools such as weather statistics and agronomic data to farmers as the company tries to expand its core business of selling genetically engineered crop seeds and associated herbicides.
Founded in 2006, San Francisco-based Climate Corp. was formed by former software engineers and data scientists from Google Inc. and other Silicon Valley technology firms, according to St. Louis-based Monsanto in a statement released Wednesday. The closely held Climate Corp. also sells farm insurance and is an authorized provider for the government’s crop insurance program, according to the company website.
Monsanto said that data science is the agricultural sector’s next major breakthrough. The deal is expected to be completed in Monsanto’s first fiscal quarter, which started Sept. 1.
Wednesday’s acquisition is Monsanto’s biggest in seven years, and it is expected boost its new Integrated Farming Systems business that combines soil and harvest data, which aims to improve seed selection and planting strategies.