Hexagon expands within agriculture machine guidance
Hexagon has entered into an agreement to acquire all assets of Rinex Technology in Perth, Australia.
Rinex develops and supplies hardware and software for agricultural tractor and combine guidance. The company was founded in 1995 and today employs 20 people. Rinex has recently released new products and sales in 2008 are estimated to be more than 30 MSEK.
"The acquisition of Rinex is a vital piece in Hexagon's growth strategy and commitment to global expansion within the agriculture market segment. We are today active in the field of high precision GPS tractor guidance via our subsidiary Leica Geosystems in Brisbane, Australia. The product portfolio of Rinex in the field of tractor guidance applications and boom section control will complement our product portfolio and provide our customers in farming with a broader product offering. We will also be able to reach synergies in sales and marketing as Rinex's strong position in Australian distribution and sprayer market complements Leica Geosystems' position in Europe and the US", says Ola Rollén, CEO and President of Hexagon AB.
Rinex will be fully consolidated as of 13 October 2008 and will immediately contribute to Hexagon's earnings.
In recent years the world market for agricultural machine guidance systems has grown at a rate in excess of 25 per cent per annum and can today be estimated to about 3 000 MSEK. Market growth is driven particularly by the need for increased productivity of farming and reduction of inputs such as fertilizer.