Tait and JVCKENWOOD partner up
The Tait Foundation will sell a minority share of its subsidiary Tait International Limited to JVCKENWOOD from Japan.
Tait International is one of two operating companies owned by the Tait Foundation and is the majority employer and radio technology development company originally established by Sir Angus Tait in 1969.
Tait’s recent development focus on convergence of traditional voice communications with data-rich, cellular and broadband communications systems has attracted the investment from JVCKENWOOD. The JVCKENWOOD product portfolio and complementary global distribution footprint positions both companies far more effectively in the increasingly competitive critical communications market worldwide.
“The capital requirement for ongoing, faster and deeper research and development to remain a global leader is limiting our growth and competitiveness. We confront significant growth potential right across our global reach and additional capital beyond the group’s ability to fund is now required. Strong global partnerships with companies such as JVCKENWOOD and the additional capital that the partial sale brings are essential to transition Tait into the converged digital world,” said Tait CEO Garry Diack.
A proportion of the sale proceeds will be invested by The Tait Foundation back into Tait International for enhanced development of cloud-based critical communications solutions, and in growing global market share. The remaining funds will provide greater ability for the Foundation to continue pursuit of Sir Tait’s wish that it support the development of technology capability and industry in Christchurch — which the Foundation largely achieves through support of the Tait companies and through funding donations to educational institutions such as the University of Canterbury.
“Access to capital and a strong funnel of smart capable young talent are essential for the technology reputation of Christchurch to continue to punch above its weight internationally,” Diack said.
“We are fortunate to attract such a strong and aligned investor in JVCKENWOOD. They share similar values to Tait and have a complementary view of the future challenges and opportunities in the industry. They have also invested in what we hold dear — the research, development and design strength of the company in Christchurch.”
The minority sale was approved by the New Zealand Overseas Investment Office and was effective from 5 December 2018.
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