JVCKENWOOD Buys Minority Share in Tait
Monday, December 10, 2018 | Comments

The Tait Foundation sold a minority share of its subsidiary, Tait International, to JVCKENWOOD from Japan. The deal was first announced in August.

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 has developed and deployed critical communications technologies and networks to the public safety, electrical utility, public transport, mining and public communications markets in more than 90 countries. The company offers globally competitive research and development, design and niche manufacturing headquartered at the Tait Technology Centre in Christchurch, New Zealand.

The JVCKENWOOD product portfolio and complementary global distribution footprint position both companies more effectively in the increasingly competitive critical communications market worldwide, a statement said.

“The capital requirement for ongoing, faster and deeper research and development to remain a global leader is limiting our growth and competitiveness,” said Tait CEO, Garry Diack. “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.”

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 Angus Tait’s wish that it support the development of technology capability and industry in Christchurch, largely achieved through support of the Tait companies and 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 is effective from 5 December.

In September, JVCKENWOOD also made an investment in Swiss firm WayRay, a manufacturer of augmented reality (AR) technology for in-vehicle head-up displays used in dash cams and car-mounted cameras.

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Comments
On 12/18/18, Ivan Weller said:
I am happy to see Kenwood make an excellent choice in investing in Tait. I believe it will be a win-win solution for both sides.

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