The Climate Corporation has a core set of support tools to benefit farmers. These include products that help them boost yields on existing farmland and better manage risks that occur throughout a crop season. The Climate Corporation will continue to offer its current risk-management products including an online service that provides crop planning, monitoring, and recommendations, and insurance offerings through its network of independent agents.
The acquisition is subject to customary closing conditions and is expected to close in the first quarter of Monsanto’s 2014 fiscal year. Following the acquisition, The Climate Corporation will operate its business to retain its distinct brand identity and customer experience. The company will continue to maintain headquarters in Silicon Valley and all of its employees will be offered continued employment.
Combined Company to Be a Leader in Data Science, Acquisition Expected to Drive Near-and Long-Term Growth Potential
The acquisition of The Climate Corporation represents a natural extension of Monsanto’s vision to increase crop productivity, conserve more of our planet’s natural resources and improve the lives of people around the world. It will also greatly expand The Climate Corporation’s capabilities in data science, agriculture’s next major growth frontier, an area that represents a potential opportunity of $20 billion beyond Monsanto’s core focus today. The companies estimate the majority of farmers have an untapped yield opportunity of up to 30 bushels to 50 bushels in their corn fields, and they believe that advancements in data science can help further unlock that additional value for the farm.The combined capabilities will immediately expand both the near- and long-term growth opportunities of Monsanto’s Integrated Farming Systems platform and research and development pipeline in the coming years. Longer-term, the combination is expected to broaden the product choices available to farmers beyond Monsanto’s current row crop and vegetable portfolio, both inside and outside of the United States. This includes the delivery of insight and decision-support tools that could increase agriculture productivity on a billion planted acres around the globe.