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The Canada-based technology company has announced its bid to acquire L3Harris Technologies’ military training business for an estimated $1.35 billion.
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CAE has entered into a definitive agreement with L3Harris Technologies to acquire its military training business for US$1.05 billion ($1.35 billion), subject to regulatory approvals.
The L3Harris military training business includes Link Simulation & Training, Doss Aviation and AMI.
L3Harris Link provides military training solutions in the US; Doss Aviation is the provider of initial flight training to the US Air Force; and AMI is a design and manufacturing facility for simulator hardware.
According to CAE, the acquisition would expand its position as a platform-agnostic training systems integrator by diversifying its training and simulation leadership in the air domain, complementing land and naval training solutions, and enhancing training and simulation capabilities in space and cyber.
“The proposed acquisition represents a significant value creation opportunity for all CAE stakeholders. It accelerates our growth strategy in defence and security and is highly complementary to our core military training business, broadening our position in the United States,” Marc Parent, CAE’s president and CEO, said.
“We are adding new customers, experience on new platforms and building our depth of expertise to address all domains – air, land, sea, space and cyber – as well as expanding into adjacent markets such as mission and operations support.
“This proposed transaction will provide greater balance to CAE across businesses and geographies, and like our recent acquisitions in the civil aviation market, it demonstrates our focus on bolstering and expanding our position in the markets we serve.
He added: “We are making investments with a view to emerge from the pandemic stronger and prepared to meet the growing demands of our customers.”
Dan Gelston, group president, defence & security, CAE said L3Harris Military Training would bring scale and capabilities that support its aim to better align with the National Defense Strategy in the US.
“We expect increasing demand for simulation-based training and the use of synthetic environments across multi-domain operations,” he said.
“This acquisition will further support CAE in providing those vital digitally immersive solutions for training and operational support.
“We look forward to welcoming the team at L3Harris Military Training as we grow CAE and position the company to support the mission of our defence and security customers.”
[Related: EM Solutions secures additional satellite terminal orders from L3Harris]
