Hemisphere Sells Non-Ag Operations

Hemisphere GPS Inc., Hiawatha, KS, signed and closed a definitive agreement to sell the business assets associated with its non-agricultural operations to the Canadian subsidiary of Beijing UniStrong Science & Technology Co. Ltd. for cash of $14.96M. PI Financial Inc. acted as advisor on the transaction for Hemisphere GPS.

The company also announced that it plans to change its corporate name to AgJunction Inc., subject to shareholder approval at its 2012 annual shareholders meeting, planned for May 2013.

Hemisphere GPS’ non-agricultural operations include the company’s Precision Products portfolio and related infrastructure. The Precision Products segment generated revenues of approximately $13.3 million in 2012 serving marine, land survey, construction, mapping, and OEM segments.

“The decision to divest our non-agriculture operations reflects our focus on the core platforms necessary to extend our leadership in precision agriculture,” said Rick Heiniger, President and CEO of Hemisphere GPS.

“The result is a streamlined business which can more effectively capitalize on the expanding market opportunities in agriculture.”

Included in the sale are the intellectual property rights associated with the non-agricultural operations necessary to support the continued growth of those operations globally, including trademarks associated with the Hemisphere GPS identity. UniStrong intends to name the acquired operations Hemisphere GNSS Inc. The Hemisphere GPS brand was not part of the company’s agriculture identity.

As part of the transaction, UniStrong and Hemisphere GPS have formed a strategic alliance and a collaborative business relationship covering supply chain management, customer support, non-competition, and perpetual technology cross-licensing.

The company’s existing agricultural business has not been interrupted during this process and the company reports that ag-related revenues have increased year-to-date.

Hemisphere GPS, Association member since 2004; hemispheregps.com.