Monsanto (MON) Acquires Biotech R&D Company Divergence

Monsanto (NYSE:MON) announced it has acquired Divergence, Inc., a biotechnology research and development company based in St. Louis.

The specific interest of Divergence at this time is its research with parasitic nematodes. They are working on developing biotechnology traits for nematode control and nematicides with novel modes of action and superior safety profiles.

Robb Fraley, Monsanto's chief technology officer, noted, "Nematodes are one of the most challenging agricultural pests farmers face each year, and we've seen them become more pervasive. These pests cost farmers millions in damages annually to crops like corn, soy, cotton and vegetables. Divergence has promising tools in its pipeline, including a nematicide which we believe could be used as a valuable seed treatment formulation to maximize the performance potential of the seeds and traits farmers plant."

Divergence CEO Derek Rapp added, "This is an exciting opportunity for Divergence. We're thrilled to see our research and product platforms, including our nematode resistant plant and nematicide work, move to Monsanto, a company that has the experience and resources to deliver outstanding products to farmers. We're confident that the hard work of the Divergence team will continue and will lead to new technologies with potential yield benefits for growers."

The two companies have been working together on projects since 2004. Terms of the deal weren't revealed.

Monsanto closed Wednesday at $70.09, climbing $0.05, or 0.07 percent.