(Reuters) – Agricultural machinery maker AGCO Corp said on Thursday it would acquire an 85% stake in GPS navigation products maker Trimble’s agribusiness for $2.0 billion in cash.
Shares of Trimble rose 4.3% to $51.34 in premarket trading.
The purchase price represents an implied enterprise value of about $2.35 billion for the business, AGCO said.
AGCO, which will place its grain and protein business under a strategic review as it seeks to transform its portfolio, has secured $2.0 billion in fully committed bridge financing from Morgan Stanley for the transaction.
Morgan Stanley & Co is acting as the financial adviser to AGCO, while Centerview Partners is the financial adviser to Trimble for the deal which is expected to close in the first half of 2024.
(Reporting by Kannaki Deka in Bengaluru; Editing by Vinay Dwivedi)
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