|AgJunction Enters Into Letter of Intent to License Automated Steering Technology To Reichhardt GmbH|
HIAWATHA, KS, Feb. 27, 2017 /PRNewswire/ - AgJunction, Inc. ( AJX.TO), a leading provider of innovative hardware and software solutions for precision agriculture, and Reichhardt GmbH Steuerungstechnik, a global innovator and supplier of automated agricultural and farming products and equipment, have entered into a letter of intent (LOI) under which Reichhardt will license certain AgJunction patents.
The LOI sets forth certain basic terms under which the parties will negotiate a non-exclusive worldwide license to certain AgJunction patents in exchange for a license fee. It also provides the basis for a deeper collaboration between the parties related to developing, marketing, and selling steering solutions containing Reichhardt's patented sensor guidance technology.
Regarding the LOI, Dave Vaughn, CEO of AgJunction said: "We are excited about expanding our collaboration with Reichhardt who is recognized globally for their engineering excellence and highly reliable products. This agreement will allow customers of both companies access to best in class steering and sensor solutions for their worldwide market requirements."
Reichhardt's CEO, Andreas Reichhardt, stated, "We have enjoyed our long-standing relationship with AgJunction and this agreement will allow for much deeper engineering and technology collaboration between our two companies with the goal of increasing our solutions portfolio for our current and planned OEM partners."
Final terms of the transaction are subject to required corporate approvals and execution of definitive agreements. The terms of the LOI are solely for the convenience of the parties in connection with the drafting and negotiation of definitive written agreements, and are not legally binding.
Reichhardt has a 30-year history developing innovative customized electronic solutions for the leading OEMs in the agriculture and construction industries. Headquartered in Germany, Reichhardt is the top supplier for sensor guidance in the global ag machinery market and is renowned for its proven row guidance solutions. The company specializes in steering solutions based on GNSS and sensors, their innovative correction data service RTK CLUE, and offers a wide range of products based on ISO 11783. Reichhardt employs 130 professionals in its locations in Germany and the USA. For more information, please visit www.reichhardt.com.