An ag tech deal had created an industry-leading, mixed-fleet precision ag platform serving farmers globally.
Agco and Trimble have closed their joint venture transaction, with the US $2 billion deal originally announced in October last year.
Agco chairman, president and chief executive officer Eric Hansotia said the Trimble acquisition was a "landmark transaction" for the company.
The joint venture, known as PTx Trimble, combines Trimble's precision agriculture business and Agco's JCA Technologies, which provides advanced technology platforms for agricultural applications that are scalable.
The new company is poised to better serve farmers with factory fit and retrofit applications in the mixed-fleet precision agriculture market.
AGCO has acquired an 85 per cent stake in PTx Trimble, and Trimble will hold a 15pc stake.
The PTx Trimble joint ventre will be consolidated into AGCO's financial statements.
"Farmers worldwide need technologies that support them to be more productive and profitable while minimising the environmental impact of their operations," AGCO's chairman, president and chief executive officer Eric Hansotia said.
"PTx Trimble will provide farmers greater access to next-generation precision ag tools, no matter what brands of tractors and implements they operate."
The formation of PTx Trimble enhances Agco's comprehensive technology offering around guidance, autonomy, precision spraying, connected farming, data management and sustainability.
"Farmers are the real winners here," Trimble's president and chief executive officer Rob Painter said.
"By combining our expertise and resources through this joint venture, we aim to accelerate the pace of innovation. With a focus on open technologies, customers will benefit from tech solutions available to farmers across a broad range of tractor and implement brands."
The general manager of Vantage, an importer and distributor of Trimble precision technologies into Australia, Michael Casey said it was an exciting time for the business.
"It's going to increase the investment and accelerate the development of new technologies," he said.
Agco's consolidated precision ag revenue is now expected to exceed US $2.0 billion by 2028, and the transaction is expected to be accretive to AGCO's revenue growth, adjusted operating margin profile and adjusted earnings per share in the first full year post-close.
Agco financed the transaction through a combination of US $1.1 billion in recently issued senior unsecured notes, a US $500 million term loan facility, other borrowings and cash on hand.
Paula Thompson
Paula Thompson is ACM's National Machinery and Ag Tech writer. She has been an agricultural journalist for more than 20 years. Prior to her current role, she was a reporter with the Stock Journal, covering livestock markets and the grains industry.
Paula Thompson is ACM's National Machinery and Ag Tech writer. She has been an agricultural journalist for more than 20 years. Prior to her current role, she was a reporter with the Stock Journal, covering livestock markets and the grains industry.
