(NAFB) – CNH Industrial Monday announced an agreement to acquire Raven Industries for $2.1 billion.

The transaction will be funded with available cash on hand of CNH Industrial. Closing is expected to occur in the fourth quarter of 2021, subject to approval of Raven shareholders and regulatory approvals. CNH will pay $58 per share, representing a 33.6 percent premium to the Raven Industries four-week volume-weighted average stock price.

CNH CEO Scott Wine says, “This acquisition emphasizes our commitment to enhance our precision farming portfolio and aligns with our digital transformation strategy,” adding, the acquisition “will provide our customers with novel, connected technologies, allowing them to be more productive and efficient.”

Headquartered in Sioux Falls, South Dakota, Raven Industries is organized into three business divisions, including Applied Technology, Engineered Films and Aerostar. The company is a global technology partner for OEMs, agriculture retailers and dealers, with consolidated net sales of $348.4 million for the twelve months ended January 31, 2021.