CAE Definitive Agreement with L3Harris Technologies to Acquire Military Training Business | CAE Definitive Agreement with L3Harris Technologies to Acquire Military Training BusinessFinancial Buzz

CAE Definitive Agreement with L3Harris Technologies to Acquire Military Training Business

CAE reported entry into a definitive agreement with L3Harris Technologies (NYSE: LHX) to acquire L3Harris’ Military Training business for USD 1.05 Billion that is subject to customary adjustments.  The acquisition is expected to close within the second half of 2021, subject to regulatory approvals and certain customary closing conditions. 

This acquisition will further CAE’s place in platform-agnostic training systems integrator.  It will diversify CAE’s training and simulations within air domain, land and naval training solutions, and enhancing its training and simulation capabilities in cyber and space. 

“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,” said Marc Parent, CAE’s President and Chief Executive Officer. “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. We are making investments with a view to emerge from the pandemic stronger and prepared to meet the growing demands of our customers.”

“With annual revenues of approximately US$500 million in 2020, L3Harris Military Training brings scale and capabilities that support our imperative to align closely with the National Defense Strategy in the United States,” said Dan Gelston, Group President, Defence & Security, CAE. “We expect increasing demand for simulation-based training and the use of synthetic environments across multi-domain operations. 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.”