JVCKENWOOD to invest in Tait International
17th Aug 2018
JVCKENWOOD has entered into an agreement for a share acquisition and a capital and business alliance with Tait International, a wholly-owned subsidiary of Tait and revealed that it is looking to launch a broadband solutions business as a top priority.
Details of the amount of shares to be purchased and the value of the deal have has of writing, not been disclosed. JVCKENWOOD plans to acquire shares of Tait International in October 2018 and the impact that this will have on JVCKENWOOD’s 2018 business forecast is expected to be minor.
In a statement, JVCKENWOOD said: “In the professional digital radio solutions market, a major transition from narrowband to broadband networks is underway with advances in digital transformation. Under these circumstances, we view the launch of the broadband solution business, as a new top priority business area to achieve medium- and long-term growth of the Communications Systems Business down the road.
“…By integrating the technologies, know-how, and sales channels of JVCKENWOOD and Tait International, we will work to rapidly launch and expand the broadband solution business.”
Back in May, Tait Communications announced that it was seeking outside capital to allow it to “take advantage of significant market growth opportunities.” At the time, Garry Diack, Tait Communications’ chief executive said: "The current ownership of the commercial business is by two New Zealand charitable trusts set up by Sir Angus Tait prior to his passing in 2007," Mr Diack says. "For a decade, this ownership arrangement has provided a stable platform upon which the company has developed to this point. Now, alongside the trusts, external investment and partnerships are needed to take advantage of global emerging technologies to secure the future of the company he founded.
"We have incorporated a new, New Zealand parent company which has the ability to accept external investment and Tait is pursuing proposals for a minority investment in this new company," he added. Diack later said in an interview that the company is looking to raise around $20 million.
JVCKENWOOD is seeking to increase its activities in the North American public safety market by strengthening cooperation with its communications system subsidiaries in the US and aiming to provide total solutions for P25 professional radio systems. The company is also converting Italy-based Radio Activity S.r.l., a developer and seller of digital radio relay systems that are compliant with DMR standards capable of small-scale system construction at low cost, into a subsidiary, while also deploying the NEXEDGE series of professional digital radio systems around the world.