IBM has bought agtech company AgTech for $1.8bn.
The deal will help the tech giant accelerate its ag tech efforts, a key focus of President Donald Trump’s administration.
The move, which was announced by IBM Chief Executive Ginni Rometty in a news release, comes as the tech company tries to become a bigger player in agricultural technology, a challenge that has been exacerbated by the rapid expansion of ag technology companies in recent years.IBM said AgTech would operate in four areas: agriculture, agriculture systems, ag technology and agri-environment.
The company said the deal will “provide IBM with a platform for rapid adoption and integration of ag technologies into IBM products.”
AgTech will continue to have its headquarters in New York, where the company’s operations are headquartered.
The company’s chief executive, James Dolan, will also be part of the executive team, the company said in a statement.
Dolan will remain on the board, IBM said.
AgTech was founded in 2004 by two men from California: David Gertler, a software engineer who graduated from UC Berkeley in 2008, and Andrew Miller, who graduated in 2012 from Stanford University.
The two worked on AgTech’s first product, AgTech 2, which became the basis for AgTech 3, a product that became AgTech 4 and AgTech 5, which merged with AgTech in 2018.
The four-year-old company has a team of around 10 people.
Its product line includes software that helps farmers better manage their crops and reduce waste, such as the use of water conservation systems and planting seeds that improve the productivity of crops.
It also helps farmers understand their crop and irrigation needs, such the type of soil they need to grow crops and the irrigation systems needed.
Its software also helps them understand their farm management system, such what types of equipment are needed and what kind of management tools to use to manage the plantings and harvest.
Its ag tech division has also helped grow AgTech into a global leader in agricultural software, including a growing business in agriculture and agrochemicals.