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Investing.com — Shares of IP-focused AgTech company AgriFORCE Growing Systems (NASDAQ:AGRI) surged after it said it has agreed on a deal to acquire an AgTech European consultancy.
AgriFORCE stock rocketed in reaction to the news, up 160% to around $5.60, but the earlier part of the session its shares jumped over 200% to well over the $7 mark.
The Nasdaq-listed company said the European consultancy has over 200 employees and reported impressive numbers in 2020, with annual consulting revenues of over $26 million.
The company expects the purchase price to be around $29 million, consisting of a mix of cash and stock.
“This acquisition is an alliance of our complementary expertise and shared values. Both AgriFORCE and this leading European AgTech consultancy are dedicated to making positive change in the lives of farmers and consumers,” said Ingo Mueller, CEO of AgriFORCE.
The company outlined several reasons for the acquisition, which included leveraging the consultancy’s expertise to accelerate the deployment of its proprietary AgriFORCE Grow House and related IP.
