JVCKENWOOD to Buy Shares in Tait, Expand Broadband Business
Friday, August 10, 2018 | Comments
JVCKENWOOD plans to acquire shares of Tait International in October 2018. The Japanese company entered into an agreement for a share acquisition and capital and business alliance with Tait International, a wholly owned subsidiary of New Zealand-based Tait Ltd.

JVCKENWOOD said the investment aligns with its strategy to step up its North American public-safety business, expand its digital radio system business globally and focus on integrating broadband technologies into its LMR portfolio.

“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,” the company said in a statement. “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 May, Tait restructured and announced it is seeking outside capital to enable it to “take advantage of significant market growth opportunities.”

JVCKENWOOD also said it expects the share acquisition and the capital and business alliance to translate into reduced development and production costs in 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 Japanese company said Tait “is a pioneering company in commercializing LMR and broadband solutions, and it also has strengths in developing system integration solutions and software that address customers’ needs.”

The effect of the share acquisition on JVCKENWOOD’s business forecast of 2018 is expected to be minor.

JVCKENWOOD has stakes or owns several digital radio companies. Last year, the company acquired Radio Activity, a Digital Mobile Radio (DMR) manufacturer based in Milan, Italy. The company also invested in Sonim Technologies, a provider of ultra-rugged Long Term Evolution (LTE) handset technology, last year.

The firm acquired EF Johnson Technologies in 2014, and owns console and software supplier Zetron.

In 2016, Tait and Harris announced an exclusive distribution agreement between the two companies, including integrating the two vendors’ distribution channels. Tait executives did not respond to a request for comment by press time.

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