Benzinga | Jun 21, 2021 10:19AM EDT

CNH Industrial Agrees To Buy Raven Industries For $2.1B

* CNH Industrial NV (NYSE:CNHI) has agreed to buy Raven Industries Inc (NASDAQ:RAVN), a precision agriculture technology company, for $58 per share in cash, a 33.6% premium to Raven's four-week volume-weighted average stock price in an all-cash transaction.

* The deal is valued at $2.1 billion.

* The transaction is expected to close in the fourth quarter of FY21.

* "The combination of Raven's technologies and CNH Industrial's strong current and new product portfolio will provide our customers with the novel, connected technologies, allowing them to be more productive and efficient," said Scott Wine, Chief Executive Officer, CNH.

* The transaction is expected to generate approximately US$400 million of run-rate revenue synergies by 2025, resulting in US$150 million of incremental EBITDA from synergies.

* Price action: CNHI shares are trading higher by 1.27% at $16.40 on the last check Monday.