Key Takeaways:
- Gevo, Inc. acquires Cultivate Agricultural Intelligence, LLC (CultivateAI) for $6 million, with the potential for additional earn-out payments.
- CultivateAI will be integrated into Gevo’s Verity subsidiary, focusing on carbon accounting and agricultural data solutions.
- CultivateAI’s SaaS platform provides real-time agricultural data to support farm operators, agronomists, and researchers.
- The acquisition is expected to expand Verity’s business and bring additional revenue streams from outside the biofuels sector.
Gevo Acquires CultivateAI for $6 Million to Strengthen Agricultural and Carbon Tracking Capabilities
Gevo, Inc. (NASDAQ: GEVO) has acquired Cultivate Agricultural Intelligence, LLC (CultivateAI) for $6 million in cash, with the potential for additional earn-out payments. CultivateAI, a company providing agricultural data through a software as a service (SaaS) platform, will be integrated into Gevo’s wholly owned Verity subsidiary. The acquisition is aimed at accelerating Verity’s business development and growth.
CultivateAI’s platform is a cloud-based, mobile solution that helps farm operators, agronomists, and researchers make informed, data-driven decisions using real-time analytics. The business is expected to generate $1.7 million in revenue in 2024 and operate with positive cash flow.
Combining Agricultural Data with Carbon Tracking
Gevo plans to combine CultivateAI’s data and analytics capabilities with Verity’s carbon accounting and tracking services to provide data-driven solutions for carbon abatement in food, feed, fuel, and industrial markets. According to Gevo, this integration will also aim to support farmers in improving their operations, sustainability, and profitability.
“Adding CultivateAI and its inventive approach to Verity will help us grow revenue by providing the most complete set of data-driven analytics services to farmers, agronomists, and researchers,” said Dr. Paul Bloom, Head of Verity and Chief Carbon Officer of Gevo.
Verity’s Expansion with New Capabilities
Verity, which focuses on tracking, verifying, and valuing carbon intensity, will incorporate CultivateAI’s existing technology and clients into its portfolio. The SaaS platform’s ability to provide real-time data is expected to complement Verity’s carbon tracking solutions, broadening Verity’s scope beyond the biofuel sector.
“We are constantly looking for this kind of development that delivers new streams of untapped revenue to the company,” said Dr. Pat Gruber, CEO of Gevo.
Additional Revenue Streams and Business Growth
The acquisition is expected to bring new clients to Verity and enhance Gevo’s overall business by providing additional revenue streams. Gevo intends to continue offering data and analytics tools to help clients better understand and improve their business operations while contributing to carbon reduction efforts.
