In a press release by biotech company Monsanto, it said it had acquired weather data analysis company Climate Corporation for USD930 million. The press release read, "The acquisition will combine The Climate Corporation's expertise in agriculture analytics and risk-management with Monsanto's R&D capabilities, and will provide farmers access to more information about the many factors that affect the success of their crops."
However, information technology news site Techcrunch heard from investors that the acquisition was actually more than the published price. Monsanto was rumored to have bought Climate at over USD1 billion because the all-cash deal would be paid over a period of time.
Monsanto provide seed, biotechnology traits and crop production products globally to farmers. Backed by venture funds like Khosla, Google Ventures, Founders Fund and Atomico, Climate utilizes machine learning to provide weather predictions and other pertinent information for the agriculture business sector.
The acquisition announcement came on the heels of Monsanto reporting an increased loss of USD249 million. Monsanto intends to position its latest acquisition to lift the company from its financial difficulties.
Join the Conversation