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Land O’Lakes to Sell Geosys for $20 Million
Initially acquired by Land O’Lakes through its WinField United division in 2013, Geosys is a global digital agriculture company founded by agronomists. It offers real-time, actionable insights to its customers based on satellite and weather technology. Some of the company’s services include risk management, agronomics, remote sensing, and the monitoring of ag commodities. Headquartered in Minneapolis, Minnesota, Geosys has sales offices in North America, Europe, Australia, and Brazil.
The benefits of this acquisition were twofold. Not only would it offer Geosys a strategic partner to accelerate growth, it was also seen as a way to solidify Land O’Lake’s position as a leader in agribusiness and precision farming technology.
Geosys finds a new home
Recently entering into an agreement with UrtheCast Corporation, Land O’Lakes is selling its ownership of Geosys software for accessing, processing, cataloging, and retrieving images. Through WinField United, Land O’Lakes will retain ownership of all intellectual property connected to its R7 tool and farm-gate applications.
In addition, the Canadian-based UrtheCast will continue to provide all of the Geosys services to Land O’Lakes but will also expand its use of data once the UrtheDaily constellation is fully operational.
“At Land O’Lakes, we are constantly looking for the best ways to provide long-term support to our member-owners and our customers,” says Beth Ford, who was recently named president and CEO of Land O’Lakes. “This transaction will enhance our proprietary R7 tool’s ability to identify the right places for farmers to make incremental in-season input investments to drive yields and profitability – in real time.”
According to Donald Osborne, CEO of UrtheCast, this important acquisition brings together the best-in-class imagery capabilities of UrtheCast with the proven geoanalytics power and deep agribusiness industry relationships of Geosys.
“By unifying these companies, UrtheCast will be well-positioned as the leader in fully integrated geoanalytics solutions for the agribusiness industry,” he says. “The expanded capabilities allow UrtheCast to bring unprecedented capabilities to customers across a global value chain that spans from retailers to insurance companies, banks, and commodity trading houses. By enabling us to realize an immediate expansion of our capability set, customer footprint, and revenue stream, the addition of Geosys will strengthen our business while moving UrtheCast another step closer to the launch of the groundbreaking UrtheDaily constellation.”
The complete deal should be finalized by the end of 2020.