Construction equipment manufacturer Caterpillar has acquired Monarch Tractor, a California-based startup that develops electric and autonomous off-road vehicles, according to Bloomberg reports published Tuesday. Financial terms of the deal were not disclosed.

Monarch Tractor was a venture-backed company specializing in artificial intelligence applications for agricultural and off-road vehicles. The startup focused on developing autonomous technology for farming equipment and other outdoor industrial applications.

Prior to the acquisition, Monarch Tractor had reportedly faced operational challenges. The company encountered criticism from dealers, farmers, and at least one co-founder regarding the functionality of its technology systems. These technical issues had created mounting pressure on the startup's business operations.

Caterpillar, which describes itself as the world's largest manufacturer of construction equipment, appears to be making a strategic investment in autonomous vehicle technology through this acquisition. The deal represents the company's entry into the electric and autonomous vehicle sector for off-road applications.

The acquisition comes as traditional heavy equipment manufacturers increasingly seek to incorporate artificial intelligence and autonomous capabilities into their product lines. The agricultural and construction industries have shown growing interest in automated solutions that could improve efficiency and reduce labor costs.