Origin Enterprises buys agri-tech provider for up to £16.2m

Ireland-based agri-services group Origin Enterprises has bought Resterra Group, a provider of agri-technology services to primary producers, for up to £16.2m.

The AIM-listed company believes that Resterra will enhance its technological abilities, particularly expanding its data driven crop management framework and complement its five-year research partnership with University College Dublin to build digitally based and data driven advisory tools for rapid and localised crop technology transfer.

The company paid £11.4m and a deferred payment of up to £4.8m will be paid depending on Resterra meeting specific profit targets.

Resterra's revenue and earnings before interest and tax (EBIT) for the 2016 financial year were £2.6m and £800,000, respectively.

Origin chief executive Tom O'Mahony said: "Digital technologies have the potential to support the delivery of dynamic and highly customised crop management strategies to optimise gross margin at farm level.

“These developments are radically transforming how agronomists interact with farmers. Resterra will enhance Origin's service capability in existing and wider geographies.”

Shares in Origin Enterprises were up 5.33% to 6.74p at 1234 GMT.