AgJunction Inc., a provider of innovative hardware and software solutions for precision agriculture, announced in a press release on March 31, 2014 that it has signed an agreement for the sale of its Cloud Services division to EFC Systems, Inc., of Brentwood, Tenn. for $3.25 million in cash less net liabilities of approximately $0.8 million.
AgJunction’s Cloud Services division employs 15 people and generated revenue of $2.4 million in 2014. It operates in State College, PA where it supports over 2,000 agricultural retail locations through its suite of precision agronomy software. The transaction has been finalized and all Cloud Services business activities and related costs have been transferred as of March 31, 2015. All 15 employees of AgJunction Cloud Services have joined EFC Systems.
Divesting the division is aligned with AgJunction’s strategy to focus all of its resources on delivering the most accurate, innovative and reliable steering solutions through OEM channels globally.
“Over the past two years, by prioritizing our resources, we have successfully positioned our business around our core strengths in machine control,” Rick Heiniger, President and CEO of AgJunction said in the press release. “Under its new ownership, the Cloud Services Division can better receive the necessary level of resources dedicated specifically toward agricultural software.”
EFC Systems is a leader in providing work-flow solutions for both agricultural retailers and wholesalers. Adding precision agronomy software applications to EFC’s portfolio expands their retail offering, and offers the opportunity to integrate complementary platforms.
"At EFC Systems, our vision is to provide integrated ERP and Precision Agronomy Solutions to our clients,” said Ernie Chappell, President of EFC Systems. “Agricultural retailers continue to express the desire for a solution that works across their accounting system, supply chain and agronomy centers, and we are very excited to be adding this platform to our suite of products,” he added.
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