Tait Communications buys Brazilian partner
Sept. 17 (BusinessDesk) - Tait Communications, the Christchurch-based radio communications firm, has bought its
long-time Brazilian partner SGM Telecomunicacoes for an undisclosed sum as it looks to beef up its presence in the
rapidly growing Latin American economy.
Sao Paulo-based SGM, which Tait told BusinessDesk has multi-million dollar annual revenues and a staff of 30, will be
rebranded as Tait Communications, and become the group's regional hub for its Latin American operations, the company
said in a statement. The acquisition will be funded from existing cash and working capital facilities, though the
details of the transaction are confidential.
"Strengthening Tait in Brazil by acquiring the expertise and market know-how of SGM moves us closer to our clients and
gives us the strategic advantage of a local presence in the burgeoning Brazilian market," Tait Americas president Victor
Agnellini said. "We expect to expand revenue opportunities in Latin America not only via our products and platforms, but
through our services and solutions offerings too, as well as those offered by our global partner initiatives."
The two companies have previously fufilled analogue and digital contracts across Brazil's 27 states and throughout the
wider continent, with a client list including Sao Paulo Military and Civil Police, Minas Gerais Military Police, the
military police in Panama, Companhia Paranaense de Energia (COPEL), and the Brazilian state oil company, Petrobras.
"Strategically, this makes far more sense than a green field start-up," Tait acting chief executive David Wade said in a
statement.
Tait has traditionally built digital radios and transmission equipment, though has expanded its focus supplying software
and services. That shift led to the company cutting 74 jobs in Christchurch in June, as it scaled back domestic
manufacturing.
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