10 Dec 2018

Tait Foundation sells minority stake to international competitor

6:35 pm on 10 December 2018

Christchurch-based Tait Foundation has sold a minority stake in its international business to a Japanese competitor.

JVC Kenwood bought the stake for an undisclosed sum, but Tait had been looking to raise $30 million to $40m for international expansion.

Tait International recently won a $30m contract with Transport for London to replace the radio system on the city's buses and needed the additional investment for research and development, and to fund growth in other markets, particularly in Europe.

Tait Communications chief executive Garry Diack said the funds were required to remain competitive in key markets.

"We confront significant growth potential right across our global reach and additional capital beyond the group's ability to fund, is now required," he said.

"Strong global partnerships with companies such as [JVC Kenwood] and the additional capital that the partial sale brings are essential to transition Tait into the converged digital world."

He said the company was fortunate to attack investment from JVC Kenwood, which had a complementary view of the industry.

"They have also invested in what we hold dear - the research, development and design strength of the company in Christchurch."