Gevo acquires CultivateAI for its Verity business unit

Gevo Inc. announced Sept. 26 that it has acquired Cultivate Agricultural Intelligence LLC for $6 million in cash with the opportunity for the sellers to receive additional earn-out payments.

Gevo will fold CultivateAI into its wholly owned Verity subsidiary to accelerate Verity’s business development and growth.

According to Gevo, CultivateAI is a proven business with expected 2024 revenue of $1.7 million and corresponding positive cash flow.

CultivateAI provides agricultural data to clients through a software-as-a-service (SaaS) platform.

Gevo said it expects to combine CultivateAI’s digital agriculture data and analytics platform with Verity’s carbon accounting and tracking solutions to provide the highest-quality data-driven solutions for carbon abatement in food, feed, fuels and industrial markets while helping farmers improve their operations, sustainability and profitability.

CultivateAI’s SaaS platform is a cloud-based, mobile platform that helps farm operators, agronomists, ag-service providers and researchers make informed, data-driven decisions with real-time analytics.

“Adding CultivateAI and its inventive approach to Verity will help us grow revenue by providing the most complete set of data-driven analytics services to farmers, agronomists and researchers,” said Paul Bloom, the head of Verity and Gevo’s chief carbon officer. “With this acquisition, Verity is speeding up our development and increasing the value we will deliver to our customers.”

According to Gevo, Verity is at the forefront of creating the ability to track, verify and empirically value carbon intensity across the full carbon lifecycle.

By adding the tools and existing business from CultivateAI, Verity will benefit from the addition of clients outside the biofuel segment as well as additional revenue streams.

“We are constantly looking for this kind of development that delivers new streams of untapped revenue to the company,” said Gevo CEO Pat Gruber. “As we accelerate development of Verity, we expect to see these customer relationships and revenue opportunities grow as customers seek out new products and services that help them understand their businesses better. These new business elements support our mission of growing an efficient circular economy and delivering shareholder returns by adding scalable revenue opportunities now.”