CNH to acquire Hemisphere GNSS from China’s UniStrong
By Chad Elmore30 March 2023
Move brings core satellite navigation technology in-house
CNH Industrial has entered into an agreement to purchase Hemisphere GNSS, a supplier of satellite positioning technology, from China’s Beijing UniStrong Science & Technology Co., Ltd. Consideration for the acquisition is preliminarily determined at $175 million, free of cash and debt, and subject to customary adjustments. It will reportedly be funded with available cash on hand.
CNH said the acquisition is a critical step that advances its automated and autonomous solutions for the agriculture and construction equipment markets. Combined with its Raven brand’s capabilities, this development is expected to give CNH full control of its precision and navigation technologies.
“This move enhances our automation and autonomy tech stack and broadens our talent pool,” said Marc Kermisch, Chief Digital & Information Officer at CNH Industrial. “Having Hemisphere’s technology in-house will enable us to accelerate a broad range of our precision technology programs, providing our customers with immediate productivity-enhancing solutions. It will also increase the long-term competitiveness and flexibility of our agriculture and construction portfolio.”
Hemisphere’s proprietary Global Navigation Satellite System (GNSS) solutions provide pinpoint accuracy for the agriculture, construction, mining and marine industries. The company designs electronic systems and software solutions. Their core technology capabilities include application-specific integrated circuit chips, circuit boards, radio frequency signal processing, navigation algorithms and satellite-based correction designs.
CNH said the company will continue to operate as a standalone business via its current operations in the United States, Canada and Australia.
Hemisphere’s expertise and network will be integrated CNH’s products and services. The company said this combination of technology and product is expected to contribute to providing customers with a superior user experience in the field and on the job site.
“Our team is excited to combine resources and talent with CNH Industrial. This enables us to further enhance our technology and product development in core GNSS, agriculture, construction, marine and machine control markets, and to directly integrate our technology with CNH Industrial’s world class equipment,” said Farlin Halsey, President and CEO at Hemisphere GNSS.
Closing is expected to occur within the third quarter of 2023, subject to the satisfactory completion of all required closing conditions including Unistrong’s shareholders’ approval, and all mandatory regulatory approvals, including those required by the applicable laws and regulations of the People’s Republic of China.
Hemisphere GNSS was created in 2013 after its long-time distributor in China, UniStrong, purchased the precision products business and intellectual property from Hemisphere GPS Inc. Today, Hemisphere GNSS holds numerous patents and sells globally with several service and technology brands including Athena, Atlas, Crescent, Eclipse, Outback Guidance, and Vector for high-precision applications.