Gevo, Inc. has finalized its acquisition of Cultivate Agricultural Intelligence, LLC for $6 million in cash, with provisions for additional earn-out payments to the sellers. The acquisition will see CultivateAI integrated into Gevo’s wholly owned subsidiary, Verity, to enhance its business development and growth.
CultivateAI is a well-established company, projecting 2024 revenues of $1.7 million alongside positive cash flow. It offers agricultural data to clients via a software-as-a-service (SaaS) platform.
As per the press release, Gevo plans to merge CultivateAI’s digital agriculture data and analytics capabilities with Verity’s carbon accounting and tracking solutions. This integration aims to deliver high-quality, data-driven solutions for carbon reduction across the food, feed, fuels, and industrial sectors while also aiding farmers in enhancing their operations, sustainability, and profitability. CultivateAI’s cloud-based, mobile SaaS platform provides real-time analytics, enabling farm operators, agronomists, ag-service providers, and researchers to make informed decisions.
“Integrating CultivateAI and its innovative approach into Verity will enable us to grow revenue by offering the most comprehensive data-driven analytics services to farmers, agronomists, and researchers,” stated Dr. Paul Bloom, Head of Verity and Chief Carbon Officer at Gevo. “This acquisition accelerates our development and increases the value we can deliver to our customers.”
Verity is a leader in tracking, verifying, and valuing carbon intensity across the complete carbon lifecycle. By incorporating CultivateAI’s tools and existing business, Verity aims to attract clients beyond the biofuel sector and develop new revenue streams, the press release further added.
“We are continually seeking opportunities that open new revenue channels for the company,” said Dr. Pat Gruber, CEO of Gevo. “As we advance Verity’s development, we anticipate growing customer relationships and revenue opportunities, driven by the demand for products and services that enhance business understanding. These new elements align with our mission to foster an efficient circular economy and provide shareholder returns through scalable revenue opportunities.”
