Wednesday 17th September 2014
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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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