AgTech’s Goal of Developing a Sustainable Food Culture Expected to be Strengthened by AgriFORCE Merger

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Photo courtesy of AgriFORCE

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A few years ago, few people used the term agricultural technology or agritech or agtech. But for some, following the growth of sustainable food culture, it has become not only a much-needed response to environmental threats, but also a hot investment.

Venture capital firm AgFunder reports that in 2021, agribusiness tech investments raised $24 billion in the first half of the year, nearly the total amount raised in 2020.

Companies such as FMC Corp. FCM, Tyson Foods Inc. TSNand AppHarvest Inc. APP have been some of the top public companies focused on growing their agtech skills.

As environmental threats continue to create global concerns, agricultural technology companies are trying to create an alternative solution to replace the way food was historically grown and the way the planet was fed.

A company that in recent years has sought to set the tone for advancing the cultivation and transformation of sustainable cultures across multiple verticals is based in Vancouver, British Columbia. AgriFORCE Growing Systems Ltd. IGA AGRIWan agricultural technology company focused on intellectual property (IP).

The company recently announced that it had reached a major milestone by acquiring Delphy Groep BV, a Netherlands-based agricultural technology consultancy, for $29 million in cash and stock. Delphy has developed a reputation in the agtech industry as a knowledge company in the plant sectors.

AgriFORCE plans to leverage Delphy’s multinational operations in Europe, Asia, Russia, Kazakhstan and Africa, and its 200 employees and consultants. Delphy reported more than $26 million in revenue in 2020 and expected revenue of $28 million in 2021, working with a client list that includes agriculture companies, governments, universities and major agtech vendors.

AgriFORCE believes the acquisition of Delphy complements its industry knowledge and experience and merger and acquisition strategy to identify regional and international agtech opportunities.

According to AgriFORCE CEO Ingo Mueller, the Delphy acquisition affects his company’s growth and intellectual property in several ways.

“Together, AgriFORCE and Delphy aim to transform agriculture and agtech in multiple markets globally,” Mueller said. “We look forward to leveraging the decades of experience, existing customer base and deep industry relationships that have been established by Delphy to deliver truly integrated agtech consulting solutions for a variety of plants and crops.”

Other information about Mueller’s deal included:

  • Delphy has developed expertise in testing and optimizing crops for controlled environment farming, including vertical farming. AgriFORCE aspires to be at the forefront of agtech knowledge, IP innovation as well as operational expertise to help growers deliver sustainable, efficient and healthier crops.
  • Delphy has generated historic financial performance and growth in the EMEA (Europe, Middle East and Asia) region and aims to capitalize on this growth. The company plans to expand Delphy’s consulting business in North America and establish a new research and development center in the United States. AgriFORCE also plans to increase Delphy’s penetration in Asian markets.
  • AgriFORCE believes that having a positive impact on agriculture requires an integrated approach. This cannot be achieved by simply assembling off-the-shelf components. Companies will look to work together to impact agriculture from seed to table.
  • Building state-of-the-art facilities is not enough on its own. These facilities require strong operating systems, operational expertise and ongoing management to achieve their full potential.
  • Current greenhouse and indoor growing methods have their own challenges – using too many natural resources is bad for the environment and does not provide ideal growing conditions. AgriFORCE’s core intellectual property, the GrowHouse, is designed to address these issues.

Most important to AgriFORCE is the belief that the acquisition of Delphy will help it continue to expand its innovative global seed-to-table philosophy of clean, green and better and to deliver better plants and better food for the world.

You can learn more about AgriFORCE at www.agriforcegs.com.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investment advice

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