Article content continued

In April 2012, David Martin and Nancy Knowlton — the husband-and-wife founders of SMART — resigned their roles as executive chair and CEO, respectively. Gaydon, the former head of U.K.-based television set-top box manufacturer Pace, was brought in as CEO and tasked with turning the faltering company around. He immediately embarked on an ambitious agenda of cost-cutting that included layoffs, the sale of its Calgary building and the closure of its Ottawa product assembly facility.

Gaydon also refocused the company’s efforts around new technologies and products, especially ones aimed at a business clientele.

“But that transition takes time, and that’s been the story of SMART over the past few years,” Lowe said, adding the Foxconn deal will help SMART accelerate its new strategy. “This allows us, I think, that ability to turn a new page and have a new chapter for SMART — and be that success story.”

Carmi Levy, technology analyst for CTV, said the acquisition by Foxconn has the potential to be a game changer for SMART if it plays out something like the 2010 acquisition of Swedish carmaker Volvo by the Chinese automotive company Geely. Volvo’s headquarters remain in place in Sweden and its brand remains unaltered, but the company has been able to invest in new technology thanks to the access to capital brought about by the acquisition.

“To Geely’s credit, Volvo has remained largely untouched. So if that’s how this Foxconn deal plays out, then this is a very good news story for SMART, because it essentially gives them access to the resources they need to lift themselves out of the doldrums they currently find themselves in,” Levy said. However, Levy added that until more details of the acquisition become public, there is no way to know for sure.