The agreement also includes a performance-based payment of up to $40m.
Following the acquisition, Precision Planting will become a part of Monsanto's Integrated Farming Systems unit, which utilizes advanced agronomic practices, seed genetics and innovative on-farm technology to deliver optimal yield to farmers while using fewer resources.
The operations of Precision Planting will remain in Tremont, Illinois, and all Precision employees will be offered their continued jobs in Tremont. The transaction is subject to customary closing conditions and is expected to be completed this summer.
Precision Planting founder Gregg Sauder said that Precision Planting's goal is to boost yields through equipment innovation, while Monsanto delivers yield through genetics and traits.
"Together, we can develop the advanced planting technologies that accurately deliver the optimum genetics to each square foot of soil," Sauder added.
Precision Planting develops the latest software, hardware and after-market production equipment to help farmers plant, harvest and analyze data from each field to improve yield and productivity.
Its new FieldView technology offers an application designed to monitor all critical aspects of planter performance and crop data analysis.
According to Monsanto, FieldView will complement Monsanto's planned Integrated Farming Systems offering of science-based agronomic seed prescriptions combined with next-generation precision equipment to help farmers boost yields and reduce risk.
