The announcement comes soon after Farmscan’s parent company, Computronics, signed a $5 million manufacturing licensing agreement with South America’s largest machinery manufacturer, Stara, to install select systems into its existing machinery lines and further underpins its resurgence in the precision agriculture market.

AgGuide was established in 2000 at Toowoomba, Qld, and has quickly built a strong reputation for its tried and proven “hands-free’’ steering and GPS guidance technology, including 2-centimetre Real Time Kinematic (RTK) precision guidance, for tractors plus a range of other machines and implements, as well as for its back-up service and support.

The business also offers steering kits and guidance for hire as well as a range of vehicle, implement and yield monitoring systems and GPS base station systems.

Farmscan assistant general manager Jason Allan said AgGuide’s ‘RowGuide’ and ‘RigGuide’ guidance systems were highly respected in the industry.

“Importantly, the acquisition raises our profile in the 2cm RTK precision guidance market,’’ Mr Allan said.

“It also provides customers with access to the world-renowned Canbus technology for steer-ready farm equipment and it will broaden the market for Farmscan’s variable rate control systems and other controllers, monitors and meters.’’

Computronics managing director Freeman Wyllie said the acquisition would extend the company’s R&D activities as well and accelerate its existing R&D program by about two years whilst significantly reducing new product development costs.

“This purchase will give us access to highly skilled R&D engineers in the agriculture field,’’ Mr Wyllie said.

He estimated the extended product range and channels to market generated from the acquisition would add a further $2 million in turnover in the first full year.

AgGuide managing director Jason Stone said the business had been impressed with Computronics’ pioneering holistic approach to integrated farm management that focused on both the immediate and future needs of its existing customers, and therefore it was delighted with the development.