Tait expands in South America

Photo / AP

New Zealand communications company buys former trading partner, Brazilian giant SGM Telecomunicacoes.

Christchurch-based Tait Communications has bought Brazilian company SGM Telecomunicacoes, in a bid to expand its presence in Latin America.

SGM Telecomunicacoes, with multimillion-dollar annual revenue and 30 staff, has been a partner of Tait Communications for 20 years. Chief executive David Wade said the purchase was a major part of Tait's long-term plans.

"We're increasing our focus on building complementary solutions, growing our professional services business and driving a greater return on our significant investment in digital technologies," Wade said. "That means delivering innovative communication solutions that help our clients save lives, protect people and property."

The company said the transaction amount was confidential, however the deal would be funded through existing cash reserves as well as working capital facilities. Sao Paulo-based SGM will form the regional hub of Tait's Latin American operations.

Tait Americas president Victor Agnellini said the purchase would provide the company with knowledge and expertise as well as understanding of the market through SGM, which would be rebranded as Tait Communications.

"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," said Agnellini. "We're now better positioned to strengthen relationships with current clients and partners and embrace a wider range of future opportunities across Latin America."

Tait Communications is a digital wireless business that designs and develops communications networks for its customers. Tait had worked with the Sao Paulo-based telecommunications business on developing analogue and digital communication projects for the likes of Sao Paulo Military and Civil Police, who were in charge of crowd control during this year's football World Cup, which was marred by riots.

Other clients included Minas Gerais Military Police, Policia Militar do Parana (Military Police of the State of Parana), Companhia Paranaense de Energia and Petrobras.

Recently the company has expanded into supplying software and services to its customers as well as digital and transmission equipment, The move resulted in the loss of 74 jobs in Christchurch in June as the company cut back on manufacturing.

Tait Communications also has major overseas offices in Houston, Brisbane and Vienna.