Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
Shares of Raven Industries (NASDAQ: RAVN) are surging premarket on Monday after it was announced that CNH Industrial (NYSE: CNHI) will acquire the company in a deal worth $2.1 billion.
CNH will pay $58 for Rave, a US-based precision agriculture technology firm, representing a 33.6% premium to Raven Industries 4-week volume-weighted average.
The companies said the acquisition builds upon a long partnership between and will further enhance CNH Industrial’s position in the global agriculture equipment market.
The transaction is expected to close in Q4 and will be funded with available cash on hand from CNH Industrial.
“Precision agriculture and autonomy are critical components of our strategy to help our agricultural customers reach the next level of productivity and to unlock the true potential of their operations,” said Scott Wine, CEO of CNH Industrial.
“Raven has been a pioneer in precision agriculture for decades, and their deep product experience, customer driven software expertise and engineering acumen offer a significant boost to our capabilities,” added Wine.
Raven Industries share price is currently up 48.8% at $57.50, while CNH's US-listed shares are up 0.68%. CNH said it does not expect the acquisition to have any impact on its guidance for 2021.
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