AgriFORCE Growing Systems Ltd. AGRI an IP-focused AgTech company has entered into a definitive agreement to acquire Delphy Groep BV, a Netherlands-based AgTech consultancy firm, for US$29 million through a combination of cash and stock. This definitive agreement follows the binding LOI as previously announced in October 2021.
"We expect the combined company will emerge as a global player with top-tier R&D capabilities, a more diverse product pipeline, increased IP development capabilities, and a broader footprint," said Ingo Mueller, CEO of AgriFORCE Growing Systems.
Delphy, which has global operations and over 200 employees, achieved 2020 annual consulting audited revenues of more than US$26 million and EBITDA of US$3 million (IFRS-based) and expects to end 2021 with revenues of US$28 million.
Jacco van der Wekken, CEO of Delphy, said: “We believe that partnering with AgriFORCE will help accelerate our global expansion plans and further establish our industry leadership."
- Delphy has generated strong historical financial performance and consistent growth. AgriFORCE plans to build on this growth through expansion of Delphy’s consulting operations, establishing an R&D center in North America, facilitating higher penetration of its Asian markets and expanding AgriFORCE’s operations in international markets.
- Accelerated deployment of the AgriFORCE GrowHouse and related IP by leveraging Delphy’s extensive experience, established customer base and industry relationships.
- Delphy’s deep industry knowledge and experience complements AgriFORCE’s M&A strategy by being uniquely positioned to identify regional and international AgTech opportunities.
- Delphy is at the forefront of knowledge and IP development and research, which the Company plans to augment with increased revenue from technical solutions in the controlled-environment agriculture (CEA) vertical.
- Ability to expand AgriFORCE’s IP development and increase innovation through Delphy’s Improvement Centers, its R&D facilities and its relationships with governments and premier AgTech universities.
- Delphy brings a team of industry leaders in AgTech and a market-leading consulting brand to AgriFORCE.
The transaction closing is expected to occur within 60 days of the signing date. Post-closing, it is anticipated that Delphy will become a subsidiary of AgriFORCE and will be operated by its current management team.
Recent AgriFORCE Activity
In December 2021 AgriFORCE signed a definitive contract with Humboldt Bliss, Ltd., an agriculture and aquaculture business based in Barbados, to deploy its proprietary automated growing system and IP. Humboldt entered into licensing and partnership deals with a US-based multi-state dispensary operator and Cannabis Global Inc. CBGL, a company focused on multiple growing verticals within the global cannabis & CBD industry.
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