Husqvarna Group to acquire Brazilian agritech firm InCeres to expand digital farming capabilities

Husqvarna Group has taken a strategic step to enhance its presence in the professional light agriculture segment by signing an agreement to acquire InCeres, a Brazilian digital platform specializing in soil analysis and precision agriculture. The acquisition aligns with Husqvarna Group’s broader vision of developing a comprehensive Total Farm Management solution within its Light Agriculture business unit, part of the Husqvarna Forest & Garden Division.

InCeres: A Cornerstone for Husqvarna’s Agriculture Ambitions

InCeres, founded in 2014, has established itself as a leader in providing digital tools for soil analysis, enabling farmers to make data-driven decisions that optimize productivity. The company’s digital platform, which integrates soil analysis with AI-assisted agronomic advice, will serve as the foundation for Husqvarna’s Total Farm Management offering. This platform aims to digitize all farm activities and measurements, reducing uncertainty for farmers and empowering them to make informed decisions tailored to their specific needs.

With climate change, the reduction of farmland, increasing demand for healthier food, and a growing global population, the need for efficient and innovative agricultural practices has never been more critical. Husqvarna Group recognizes these challenges and views the acquisition of InCeres as a key move to address the need for producing more food from less land using advanced technologies.

Disruptive Potential in the Light Agriculture Market

Mauro Favero, President of Light Agriculture at Husqvarna Forest & Garden Division, highlighted the transformative potential of the envisioned Total Farm Management solution. “Our envisioned Total Farm Management solution can combine digital intelligence on the one hand and our mechanical solutions on the other hand. Such an offering will be truly disruptive, and Husqvarna Group aspires to be the first company to develop such a complete offering for light agriculture applications,” Favero stated. He emphasized that this integration would create synergies with Husqvarna’s existing agriculture solutions, positioning the company as a unique one-stop-shop ecosystem for light agriculture farmers.

A Strategic Move for Growth

InCeres has shown impressive growth, with total sales in 2023 reaching SEK 9.3 million, a 50% increase from 2022. The company operates on a scalable subscription-based business model, where 100% of its revenues are recurring. Leonardo Menegatti, founder and CEO of InCeres, expressed confidence in the partnership with Husqvarna Group. “After having established and proven our solution, we are ready to expand the customer base and grow our business together with Husqvarna Group. We feel confident that our combined knowledge and experience can create a Total Farm Management offering that improves productivity for farmers around the world,” Menegatti said.

Integration and Future Outlook

Upon completion of the acquisition, InCeres will be integrated into Husqvarna’s Light Agriculture business unit, furthering the company’s mission to provide sustainable food security solutions globally. The financial details of the transaction have not been disclosed, as the purchase price is not considered material relative to Husqvarna Group’s market capitalization. The completion of the transaction is subject to regulatory approvals, including antitrust clearance by the relevant local authority.