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
Farmers Edge Truck
AmericasFarmers Edge, Raven Announce Collaboration Agreement
May 9, 2018
Raven Industries and Farmers Edge announced today a marketing and collaboration agreement. The two companies are working together to develop Read More
Trimble-GFX-750-Display
GuidanceTrimble Introduces GFX-750 Display System with Advanced Guidance Controller
October 30, 2017
Trimble has introduced the Trimble GFX-750 display system for agriculture applications. The display system comes with the simple-to-install, roof-mounted NAV-900 Read More
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
Trending Articles
ISPA-Yoshua-Bengio
EventsHighlights from the 14th International Conference on Precision Agriculture
July 9, 2018
The 14th International Conference on Precision Agriculture (ICPA) presented by the International Society of Precision Agriculture (ISPA) was held in Montreal, Read More
Topcon X30 Console in cab
EventsAssociation Seeks Definitive Definition of “Precision Agriculture” — What’s Your Vote?
July 2, 2018
More than two-dozen definitions of precision agriculture have been identified through the years — but which is the best and Read More
AmericasRaven Name to Grace New South Dakota State University Facility
June 27, 2018
According to a press release issued by the company, Raven Industries was recognized today in the naming of South Dakota Read More
dropcopter
DronesNew York Apple Orchard Claims World First in Pollination by Drone
June 18, 2018
Beak & Skiff Apple Orchard in LaFayette, NY, is the first orchard in the world to use drones to pollinate Read More
JDandPessl
Sensors/IoTJohn Deere, Pessl Instruments Team Up to Create Opportunities
June 18, 2018
John Deere is best known for its line of tractors, combines, sprayers, and implements. However, in an effort to help Read More
Matt-Waits-featured
Decision Support SoftwareSST’s Matt Waits: Innovative Data Solutions Key to Transforming Global Agriculture
May 31, 2018
Proagrica, part of RELX Group, earlier this year acquired U.S.-based precision agriculture solutions company, SST Software, in a move set Read More
Latest News
Tools & Smart EquipmentCanadian Planter Manufacturer Purchases Harvest Interna…
July 19, 2018
Seeding and planting technology innovator Clean Seed has signed an agreement to strategically acquire U.S. planting equipment manufacturer Harvest International, Read More
Data ManagementInfoAg News: Farmobile Launches DataEngine, Streamlines…
July 17, 2018
Busy times these days out in Overland Park Leawood, KS, for ag data startup Farmobile, as they continue to – Read More
Agrible
Grower Services & SolutionsNutrien Drops $63 Million to Acquire Agrible
July 16, 2018
Nutrien announced today that it has entered into a definitive agreement to acquire Agrible for total consideration of $63 million, Read More
Industry NewsFarmobile Acquires Prime Meridian, Taps Cubbage as New …
July 13, 2018
Farmobile today announced an agreement to acquire the assets of Prime Meridian, a precision agriculture data management company based in Read More
group-photo
DronesPrecision Agriculture Takes Flight at North Carolina St…
July 13, 2018
Take a walk into the Suggs Laboratory for Precision Agriculture and Machine Systems and it’s hard not to be impressed, Read More
Skeketee-IC-Weeder
DronesAutomated Weeders Have Arrived in Vegetable Fields
July 12, 2018
The vegetable production areas of the Central Coast of California have lifted vegetable cultivation to a high art, writes Richard Read More
AgJunction, InfoAg 2014, Autosteer, GPS
Industry NewsAgJunction Settles with Raven in Patent Infringement Su…
July 12, 2018
AgJunction Inc., a leader in advanced guidance and autosteering, has settled a patent infringement lawsuit it filed against Raven Industries, Read More
Retailer-Grower-tablet
Business ManagementTaking Measure of the Precision Agriculture Program: 6 …
July 12, 2018
In the overall agriculture market, the rhetoric surrounding emerging technology over the past half-decade has been nothing short of breathless. Read More
raven-slingshot-job-generator-job-sync-1
Industry NewsNew Raven Slingshot Advancements Will Help Save Time, R…
July 11, 2018
Raven Industries, Inc. has announced several new services available on the Slingshot and Viper 4 platforms: Job Generator and Job Read More
Onsite-logo
Industry NewsAgIntegrated Acquires Exclusive Licence to Satshot’s Im…
July 11, 2018
AgIntegrated, Inc. (AGI), a leader in precision ag data integration and software development, and Satshot, a leader and pioneer in Read More
Australian Harvest
Australia/New ZealandAustralian Agritech Plants Blockchain for Efficiency
July 11, 2018
“Agritech” at one time would have meant new equipment such as tractors and combine harvesters, but today it refers to Read More
Tomato-crop-India
AsiaIndia: Using Artificial Intelligence for the Good of Fa…
July 11, 2018
After graduating from IIT-Madras, the first thing that Vivek Rajkumar did was to buy four acres near Thiruvananthapuram and start Read More
BrightFarms
Industry NewsForbes List of Innovative Ag-Tech Companies Includes Gr…
July 9, 2018
Forbes magazine recently posted a list of the 25 most innovative ag-tech startups in 2018, which includes a few companies Read More
AmericasNutrien Ag Solutions Brand, New Digital Platform Launch…
July 9, 2018
Nutrien (formerly Crop Production Services) has officially rebranded its retail business to Nutrien Ag Solutions, aligning the company’s retail operations Read More
ISPA-Yoshua-Bengio
EventsHighlights from the 14th International Conference on Pr…
July 9, 2018
The 14th International Conference on Precision Agriculture (ICPA) presented by the International Society of Precision Agriculture (ISPA) was held in Montreal, Read More
TerrAvion
Industry NewsTerrAvion Integrates Aerial Imagery with John Deere Ope…
July 6, 2018
TerrAvion, Inc., a large volume provider of aerial imagery to agriculture, has announced an integration to allow TerrAvion’s aerial imagery Read More
Farmer-Tablet
Data ManagementAgriculture’s Next Breakthrough: New Technologies…
July 3, 2018
We live in an exciting time in agriculture. Not only is technology advancing rapidly, but the understanding and comprehension of Read More
Nebraska-Storm
Precision IrrigationNotes from the Field: A Look at Irrigation Management P…
July 2, 2018
One of the things I love most about my work is making periodic treks into the field – more often Read More