Tait Communications acquires Brazilian business in a Latin-American landmark deal

Tuesday, 16 September 2014

Christchurch, New Zealand: Global critical communications company Tait Communications has made a significant step in strengthening its presence and growth prospects in Latin America through the acquisition of long-time partner SGM Telecomunicações.

São Paolo-based SGM, which has been a partner of Tait Communications for over 20 years, will become the regional hub for the company's Latin American operations, joining Houston, Brisbane and Vienna as major overseas offices.

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

"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 won numerous analog and digital communications contracts across Brazil's 27 states and throughout Latin America, including São Paulo Military and Civil Police, Minas Gerais Military Police (PMMG), Polícia Militar do Paraná (Military Police of the State of Paraná), Companhia Paranaense de Energia (COPEL) and Petrobras.

"Brazil is one of the world's growth economies and the opportunities for us are significant," says David Wade, Tait Communications acting CEO. "SGM has been a long-time partner of ours in Brazil for more than two decades, so their expertise and reputation will enhance the Tait brand significantly. It's a key step in our global growth that capitalises on the outstanding market development work our team in Latin America has already achieved.

"This acquisition is a key part of our global growth strategy. 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. That means delivering innovative communication solutions that help our clients save lives, protect people and property."

SGM, originally established as a spin-off from Philips Electronics in the late 1990s, will be rebranded as Tait Communications. The transaction is being funded from Tait's existing cash and working capital facilities - the commercial terms of the transaction will remain confidential. SGM is also a reseller for a number of other critical communications vendors' technologies.

"SGM has existing clients, contracts, cash flows and people, which means we are acquiring relationships, capability, revenue and earnings to add to our overall financial performance. Strategically, this makes far more sense than a green field start-up," says Wade.

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