Agriforce Growing Systems buys Dutch AgTech consultancy Delphy
Agriforce Growing Systems Ltd., an intellectual property-focused agriculture technology (AgTech) company, has acquired Delphy, a Netherlands-based consulting firm focusing on horticulture and agriculture.
Founded in 2013, Delphy works with agriculture clients, government, universities, and AgTech suppliers to optimize production of plant-based food and flowers. The firm has more than 200 professionals across Europe, Africa, and Asia that help clients implement cultivation knowledge, develop and execute turnkey projects, and improve operational management.
Delphy has deep expertise in arable farming, fruit, trees, flower bulbs, pot plants, greenhouse vegetables, and mushrooms, among other areas.
The firm in 2020 had revenues of US$26 million and expects 2021 revenues of US$28 million.
Agriforce, a Vancouver-based public company listed on the Nasdaq, will acquire Delphy for US$29 million through a combination of cash and stock. The transaction is expected to close within the next 60 days.
"We expect the acquisition of Delphy will be transformative for the Company, as it significantly enhances the value proposition that we can offer customers in the AgTech industry,” Ingo Mueller, CEO of Agriforce, said. “We expect the combined company will emerge as a global player with top-tier R&D capabilities, a more diverse product pipeline, increased IP development capabilities, and a broader footprint.”
Agriforce focuses on developing and acquiring IP with the objective of improving plant cultivation and processing. The company’s foundational IP is the Agriforce GrowHouse, a proprietary facility design that combines an optimized indoor microclimate with natural light and ideal supplemental grow lighting.
The firm, which has approximately 14 employees listed on LinkedIn, completed a seed funding round in 2019 with participation from Gravitas Securities.
Agriforce’s acquisition of Delphy will greatly expand its team with a large group of AgTech consultants and a market-leading consulting brand. The deal will also expand Agriforce’s IP development and increase its innovation via the addition of Delphy’s improvement centres, R&D facilities, and relationships with universities and governments.
Delphy’s deep industry knowledge will also assist Agriforce’s M&A strategy by identifying regional and international AgTech opportunities.
"We believe that partnering with AgriFORCE will help accelerate our global expansion plans and further establish our industry leadership,” said Jacco van der Wekken, CEO of Delphy. “In particular, we look forward to accelerating the vast opportunities in North America where we see significant potential to ramp-up revenues and support the rollout of the AgriFORCE GrowHouse on a global level."
Upon deal closure, Delphy will become a subsidiary of Agriforce and will continue to be operated by its current management team.
