AGCO (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment and The Climate Corporation, a subsidiary of Monsanto Co. (NYSE:MON), announced today that a definitive agreement has been signed for AGCO to acquire the Precision Planting LLC equipment business.

“Precision Planting is a strong business that plays an essential role in the growth and adoption of innovative precision ag practices that help farmers enhance their productivity,” said Mike Stern, chief executive officer for The Climate Corporation. “As a leading global equipment manufacturer, AGCO is uniquely positioned to enable broader distribution of Precision Planting technology and will continue the development of innovative products that improve the efficiency and productivity for farmers around the world.”

“The acquisition of Precision Planting will solidify AGCO as one of the global leaders in planting technology and strengthen our position as a full line partner for professional farmers across the globe,” said Martin Richenhagen, AGCO’s chairman, president and chief executive officer.

The Climate Corporation’s Climate FieldView digital agriculture platform will retain connectivity with Precision Planting’s 20/20 SeedSense monitor. The terms of the agreement were not disclosed. The transaction is subject to regulatory approvals.