JVCKENWOOD to buy share in Tait International
JVCKENWOOD Corporation has announces that it has entered into an agreement for a share acquisition and a capital and business alliance with Tait International Ltd, a wholly owned subsidiary of New Zealand-based Tait Limited, with the aim of expanding the digital radio solutions business.
In a statement, JVCKENWOOD said it is “stepping up its activities in the public safety market in North America, which is expected to continue expanding, by strengthening cooperation with its communications system subsidiaries in the US, aiming to provide total solutions for professional radio systems conforming to Project 25 (P25), a digital radio format for North America”.
The company said it is also endeavouring to expand its digital radio system business in the private-sector market, by taking measures such as converting Italy-based Radio Activity S.r.l into a subsidiary and deploying its NEXEDGE series of professional digital radio systems around the world.
The company also said that it views the launch of a broadband solution business as a new top priority business area to achieve medium- and long-term growth.
Regarding the share acquisition and a capital and business alliance with Tait, JVCKENWOOD said that 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”.
“In addition, we can expect the share acquisition and the capital and business alliance to translate into reduced development and production costs in our existing business areas, as well as business expansion in Asia, Oceania, Brazil, and Russia by leveraging the sales channels of Tait International in those regions,” the company statement said.
Tait announced in May this year that it was seeking outside investment and amending its company structure to enable it to take advantage of growth opportunities.
“Global opportunities now exceed Tait Communications’ ability to respond and growth capital is required. Monetising some of the existing value of Tait will allow us to pursue these opportunities in a very competitive global market,” Garry Diack, the company’s chief executive, said at the time.
JVCKENWOOD plans to acquire the Tait shares in October 2018, with the effect of the acquisition on its business forecast for 2018 is expected to be minor.
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