JVCKENWOOD Corporation Invests In TAIT International
JVCKENWOOD Corporation announced 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.
JVCKENWOOD stated that 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, the company views 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.
Tait International, with which JVCKENWOOD has concluded an agreement for a share acquisition and a capital and business alliance, 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.
By integrating the technologies, know-how, and sales channels of JVCKENWOOD and Tait International, JVCKENWOOD will now work to rapidly launch and expand the broadband solution business.
In addition, JVCKENWOOD stated that they now expect the share acquisition and the capital and business alliance to translate into reduced development and production costs in their 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.
JVCKENWOOD will continue to aim at achieving growth in the digital radio solutions business, which is expected to grow further on a global scale, by providing digital radio solutions, including narrowband and broadband solutions, that are best suited to the needs of individual markets of each region.
JVCKENWOOD plans to acquire shares of Tait International in October 2018. The effect of the share acquisition on JVCKENWOOD’s business forecast of 2018 is expected to be minor.