FARGO, N.D. -- Fargo-based Appareo Systems on Nov. 5 announced it has agreed to enter a joint venture with AGCO Corp. to develop technology for advanced machine control systems.
The venture expands on Appareo's existing Intelligent Agricultural Solutions, or IAS, business structure, which was founded in 2011 by Barry Batcheller and Howard Dahl of Fargo. The IAS entity initially created wireless blockage and flow monitors and depth control for beet harvesting equipment. AGCO purchased 50 percent of the IAS business, essentially buying out Dahl and Amity Technology Co., for which he serves as president.
Batcheller, Appareo's chairman and CEO, says the new partnership is exciting because AGCO is the "world's largest manufacturer focused strictly on agricultural equipment," and the two companies' skills will enable an "unprecedented infusion of new-to-the-world technologies into production agriculture."
Advanced electronics
The joint venture focuses on the increased need for advanced electronic technology, involving data collection, wireless communication, advanced sensors and intelligent machine control, the companies say in a joint announcement. Joe Heilman, Appareo's ag accounts executive, will oversee all of the business development for the joint venture.
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Duluth, Ga.-based AGCO launched its "Fuse Technologies" strategy for precision agriculture and precision machine management in the summer of 2013. Appareo will contribute research and development toward that strategy, as well as intellectual property generation and advanced technology.
Appareo will focus on advanced machine control systems, sensing applications, automated subsystems, machine preventative maintenance and machine health monitoring, specific protein and grain control systems, and development. This will allow more remote and timely customer service, Heilman says.
Another connection
The joint venture is going to be a "great partnership to fuel our growth," Heilman says.
AGCO touts its global reputation with an independent network of 3,100 dealers in 140 countries and sales of $10.8 billion in 2013. The company includes a family of brands including Challenger, Fendt, Massey Ferguson, Valtra, RoGator, TerraGator, Sunflower and White.
It will only add to Appareo's phenomenal growth, with 45 percent compounded annual growth rate. The company employs about 180 today, Heilman says, comparing that with about 50 people less than three years ago. Appareo has done contract work for AGCO, but the new partnership could be "really exciting for the region," in its contribution to agricultural technology, he says. "We don't see the growth slowing down at least in the next five to 10 years," Heilman says.
