Hemisphere GPS Sells Non-Agricultural Operations, Plans Name Change

Hemisphere GPS Inc. has signed and closed a definitive agreement to sell the business assets associated with its non-agricultural operations to the Canadian subsidiary of Beijing UniStrong Science & Technology Co. Ltd. (“UniStrong”) $14.96 million in cash. PI Financial Inc. acted as advisor on the transaction for Hemisphere GPS.

The Company also announced that it plans to change its corporate name to “AgJunction Inc.” subject to shareholder approval at its 2012 annual shareholders meeting, planned for May 2013.

Hemisphere GPS’ non-agricultural operations include the Company’s Precision Products portfolio and related infrastructure. The Precision Products segment generated revenues of approximately $13.3 million in 2012 serving marine, land survey, construction, mapping, and OEM segments.

“The decision to divest our non-agriculture operations reflects our focus on the core platforms necessary to extend our leadership in precision agriculture,” said Rick Heiniger, President and CEO of Hemisphere GPS. “The result is a streamlined business which can more effectively capitalize on the expanding market opportunities in agriculture.”

Included in the sale are the intellectual property rights associated with the non-agricultural operations necessary to support the continued growth of those operations globally, including trademarks associated with the “Hemisphere GPS” identity. UniStrong intends to name the acquired operations “Hemisphere GNSS Inc.”. The Hemisphere GPS brand was not part of the Company’s agriculture identity.

As part of the transaction, UniStrong and Hemisphere GPS have formed a strategic alliance and a collaborative business relationship covering supply chain management, customer support, non-competition, and perpetual technology cross-licensing.

“Already having an established relationship with UniStrong as one of our resellers made our alliance a win-win for both parties,” stated Mr. Heiniger. “I am very pleased to be working together in this close technology-sharing relationship.”

The Company’s existing agricultural business has not been interrupted during this process and the Company reports that ag-related revenues have increased year-to-date. The Company’s new Outback MAX product integrated with AgJunction has had a positive reception in the marketplace.

Corporate Name Change to “AgJunction”

The re-branding of the Company as “AgJunction” is an integral part of the strategic re-focusing of the Company’s resources on the significant opportunities in precision agriculture, and part of the restructuring initiated in September, 2012. The Company maintains ownership of its key patents and leading agricultural brands including AgJunction, Outback Guidance, and Satloc, which are among the most recognized names in precision agriculture.

AgJunction will retain its listing on the Toronto Stock Exchange. Coinciding with the name change, the Company plans to change its ticker symbol from “HEM” to “AJX” shortly after the shareholders meeting, subject to shareholder and TSX approval. An announcement will precede the commencement of trading under the new symbol and will formally introduce the Company’s new corporate identity.

As part of the previously announced restructuring plan, the Company has completed the transition of its Calgary-based manufacturing activities to its external manufacturing partner, and is closing its Calgary-based manufacturing activities effective today. The transition of the Company’s head office to Hiawatha, KS, continues, and the Calgary location will be officially closed on May 31, 2013. Other progress on restructuring activities has been positive and costs associated with the restructuring are expected to come in below previously announced estimates. The Company does not require additional capital to complete the restructuring.

Upon completion, savings from the overall restructuring are estimated to be approximately $7 million per annum through reduced manufacturing costs, improved gross margins and reduced operating overhead.

A further corporate update will be provided in February, 2013.

Topics:

Leave a Reply

Guidance Stories
Beacon
GuidanceDigiFarm VBN Announces Supplier Agreement with AGCO
September 7, 2017
DigiFarm VBN LLC, an agricultural technology company, announces it has signed a supplier agreement with AGCO Corp., a world-leading manufacturer Read More
Young Corn Field
GuidanceOutback Guidance Launches Hands-Free Farming Campaign at Farm Progress Show
August 30, 2017
Outback Guidance, a leader in automated steering and advanced precision farming solutions, and a part of AgJunction, Inc., is launching Read More
GuidanceRaven Announces 2 New In-Cab Technologies
August 23, 2017
Raven Industries announces the release of two new precision agriculture products: RS1 and CR7. The RS1 combines autosteer, GPS, and Read More
Hagie sprayer
GuidanceWhat’s New and What’s Next from Hagie Manufacturing
May 16, 2017
Many were surprised by John Deere’s announcement last spring that it had acquired majority ownership of Hagie Manufacturing Co., a Read More
Trending Articles
John-Deere-labs
Tools & Smart EquipmentHow John Deere’s New AI Lab Is Designing Farm Equipment for a More Sustainable Future
September 15, 2017
On a block in San Francisco’s SoMa district, near LinkedIn’s headquarters and dozens of startups, a 180-year-old company best-known for Read More
BASF Maglis grower retailer tablet
Data ManagementWhat Will Happen to My Data? Understanding Your Rights in Precision Agriculture
September 12, 2017
The use of precision agriculture-based decision making to determine fertilizer rates and hybrid types and planting rates is becoming more Read More
Robotics/Labor SaversBlue River, Deere Deal Will Accelerate Farm Robot Innovation
September 11, 2017
No, Blue River Co-founder and CEO Jorge Heraud has not been deposed — Gaddafi-style — by big, bad corporate overlord Read More
Farming at Sunset
Business ManagementAgtech Issues: The Shiny Object Syndrome
September 6, 2017
Do you remember those cartoons where someone lures someone else by placing a piece of candy, small amount of money, Read More
AgQuip overview
Australia/New ZealandAgQuip 2017 Displays New Ag Technology in Australia
August 28, 2017
The annual AgQuip field days took place in Gunnedah, NSW on August 22-24. Being the largest agricultural field days in Read More
Agri-AFC-cotton-baler
Business ManagementBringing a Southern Sensibility to Precision Agriculture
August 7, 2017
Amy Winstead considers herself blessed to have gotten in on the ground floor of precision ag adoption in the Southeast. Read More
Latest News
Systems ManagementBayer Dismisses Antitrust Concerns about Digital Farmin…
September 20, 2017
Bayer said it was unable to propose the sale of any digital farming assets to allay EU concerns about its Read More
Farmer with iPad
Australia/New ZealandAgrian Expands into Australia
September 20, 2017
In line with a familiar growth trajectory, Agrian Inc. is moving into Australia with a physical support and sales presence Read More
Robotics Specialty Crops
EventsPrecision in Specialty Crops Gains Momentum
September 20, 2017
When John Deere acquired Blue River Technologies (BRT) recently, BRT’s See & Spray technology received plenty of play. Yet many Read More
Decision Support SoftwareSyngenta Helps Lead Efforts for Farm Management Softwar…
September 19, 2017
Ag data from tractors, combines, planters, and other farm machinery present a huge opportunity for growers to manage their operations Read More
Petra-Andren-Cicada-Innovations
Australia/New ZealandGrowLab’s Rocket Fuel for AgTech in Australia
September 19, 2017
Despite its superpower status as a producer and exporter of agricultural goods and services, up until now Australia has had Read More
CropIn-Team-Photo-credit-BW-Disrupt
AsiaCropIn Aims to be a Global Leader in AgTech Sector
September 19, 2017
Krishna Kumar created AgTech startup, CropIn Technology in 2010, along with co-founders Kunal Prasad and Chittranjan Jena. The trio went Read More
China-Beidou-Navigation-Satellite-System
AsiaChina’s Navigation System Gets Powerful Chip to I…
September 18, 2017
A new powerful chip technology has been introduced in China’s national satellite navigation system to provide high-precision positioning, according to Read More
Tablet Grower
Industry NewsFieldReveal Names Hesse New CEO
September 18, 2017
Matt Hesse has been selected as the Chief Executive Officer of FieldReveal, a newly launched joint venture formed to deliver Read More
John-Deere-labs
Tools & Smart EquipmentHow John Deere’s New AI Lab Is Designing Farm Equipment…
September 15, 2017
On a block in San Francisco’s SoMa district, near LinkedIn’s headquarters and dozens of startups, a 180-year-old company best-known for Read More
Wheat sunrise
Australia/New ZealandSparkLabs Group Launches an Agricultural Tech Accelerat…
September 15, 2017
SparkLabs Group, which claims to be the largest startup accelerator group in Asia, is stepping into agricultural tech with a Read More
Sensors/IoTCollaboration Leverages Internet of Things, Sensors in …
September 15, 2017
The vision of having license-free community sensor networks for agricultural users has made a giant leap closer to reality. A Read More
Young Corn Field
Data ManagementPurdue Online Tool to Help Farmers Make Precision Decis…
September 14, 2017
An innovative online tool developed by a Purdue University engineering professor will allow farmers to process data collected from their Read More
forbes-agtech-summit
Precision IrrigationImproving Water Management: Can Silicon Valley Help?
September 13, 2017
I recently attended the Forbes AgTech Summit in Salinas, CA, where roughly 50 start-up companies originating from Silicon Valley and Read More
Nate-Dorsey-Field-Trial-Curve-Compensation
Systems ManagementField Trial: Precision Application and Curve Compensati…
September 13, 2017
Several months ago I wrote an article about curve compensation in planters and how these systems can help create more Read More
Diamondback moth
Tools & Smart EquipmentTechAccel Invests in Unique Sprayable RNAi Pesticide Te…
September 12, 2017
TechAccel, the Kansas City-based technology and venture development company, has announced it has awarded the first grant under its “Path Read More
BASF Maglis grower retailer tablet
Data ManagementWhat Will Happen to My Data? Understanding Your Rights …
September 12, 2017
The use of precision agriculture-based decision making to determine fertilizer rates and hybrid types and planting rates is becoming more Read More
Terra
Imagery/SensingAerial Imagery Aids Decision-Making
September 12, 2017
As the growing season has progressed, aerial imagery has been part of the world record setting data-collection efforts for Terra, Read More
Hurricane-satellite-image
Decision Support SoftwareKeeping Things in Perspective: Weather vs. Climate in O…
September 12, 2017
As I write this, we are on the heels of catastrophic flooding in Houston due to Hurricane Harvey, and another Read More