Making Sense of the EarthOptics, Pattern Ag Merger

By Shane Thomas
Agribusiness Analyst | Upstream Ag

Editor’s note: In a recent issue of Upstream Ag Professional, agribusiness analyst Shane Thomas provides insight into the recent merger between EarthOptics and Pattern Ag and its impact on soil health digitalization. Here’s a summary of that article:

EarthOptics and Pattern Ag have merged to create a leading entity in soil digitization, focusing on advanced crop management and climate sustainability. The newly combined company will operate under the EarthOptics name and aim to become the authoritative source of soil insights and the leader in Predictive Agronomy. By integrating Pattern Ag’s biological and lab-based analysis with EarthOptics’ field-based sensing technologies, the merged company will offer a comprehensive understanding of soil, covering its physical, chemical, and biological properties. This combination is designed to help farmers and advisors make more informed decisions, enhancing both profitability and sustainability.

The merger provides significant benefits, such as reducing operational costs for EarthOptics by acquiring Pattern Ag’s lab capabilities and offering a more comprehensive soil analysis that includes all major soil parameters — biological, chemical, and physical. The companies had already collaborated on a product called “360 Pro,” which delivers these insights to farm customers. The merger solidifies EarthOptics’ position as a provider of well-rounded soil intelligence.

Despite the strategic alignment, the merger appears to be more reactionary, driven by challenging economic conditions. Both companies have raised nearly $90 million combined but face a difficult market environment that pressures valuations and profitability. The merger likely stems from financial constraints, including tight cash reserves and challenging product unit economics, which made the deal necessary for survival.