. an agriculture digital services and analytics provider in North America has announced it has entered into an agreement to acquire Kansas City, Missouri based digital agriculture provider Atlas Team.
The acquisition will allow Deveron to continue to build upon its expansion into the US agriculture market providing data acquisition services for drones and soil sampling as well as data analytics. Atlas currently serves farmers and agriculture industry leaders across 13 states in the US.
The US agriculture sector is almost ten times the size of its Canadian counterpart, comprising over 900 million acres of farmland. The USDA recently estimated that agricultural production from the some two million farms in the United States amount to US$389 billion in total agricultural goods. With average crop farm expenditures topping US$205,000 per farm in the US, a considerable opportunity exists for 10% improvement in yields or reduction in costs from digital solutions.
Scott Jackman, the principal at Atlas, will become the President of Deveron’s US subsidiary. Mr. Jackman spent 22 years in the US Army as an aviation officer. He served multiple tours overseas where he commanded in combat. Scott also led numerous Department of Defense level programs spanning intelligence and operational activity. More recently, he founded Atlas Team which has grown into a precision agriculture and remote sensing company providing support to clients ranging from farmers to multi-national corporations.
“Farmers in the United States are looking for new digital solutions and ways to improve farm outcomes,” commented David MacMillan, Deveron’s President and CEO. “Atlas has an established base of operations that immediately expands our current reach throughout the US Midwest. We are also adding an incredible leader in Scott Jackman to our team, who will focus on scaling our digital service offerings throughout the US market. We know data acquisition services and analytics improve return on investment on the farm and are excited to see the growth ahead as our footprint expands.”
The purchase price for the acquisition of Atlas comprises 250,000 shares of the Company, issued to the shareholders of Atlas, at a deemed price of $0.30. Under the terms of the agreement, the shares will be released from escrow in 3 tranches on an annual basis, commencing on the first anniversary of the closing date. All securities issued in connection with the acquisition are subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. Closing is expected to occur by the end of the month.
Source: Press Release