By Murdo Morrison2021-03-01T15:01:00+00:00
CAE has made its largest acquisition to date and its fourth in almost as many months, after agreeing to buy L3Harris’s US military training arm for $1.05 billion.
Source: US Air Force
US Air Force crew train in a CAE-run Lockheed Martin C-130H simulator
The deal – which is expected to close in the second half of this year – will make the Canadian firm the largest non-OEM training provider to the US military, with a position on key programmes such as the US Air Force’s Lockheed Martin F-16 and Northrop Grumman B-2, and the US Navy and US Marine Corps Boeing F/A-18.
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The CAE headquarters is seen Thursday, May 14, 2009 in Montreal. THE CANADIAN PRESS/Paul Chiasson March 01, 2021 - 6:01 AM
MONTREAL - CAE Inc. announced a deal Monday with U.S. company L3Harris Technologies to buy the company s military training business for US$1.05 billion.
The L3Harris military training business includes Link Simulation & Training, Doss Aviation and AMI. We are adding new customers, experience on new platforms and building our depth of expertise to address all domains â air, land, sea, space and cyber â as well as expanding into adjacent markets such as mission and operations support, CAE chief executive Marc Parent said in a statement.
CAE to Acquire L3Harris Technologies Military Training Business for $1B Our Bureau 1811
CAE today announced it will acquire L3Harris Technologies Military Training business for $1.05 billion.
The Acquisition value represents approximately 13.5 times the L3Harris Military Training business estimated adjusted 2020 EBITDA(1) or approximately 10 times, including cost synergies, which are expected to reach a range of C$35 to C$45 million (approximately $28 to $35 million) annually by the end of the second year following closing of the Acquisition.
The Acquisition is expected to be low-teens percentage EPS accretive to CAE in the first full year post closing, including expected cost synergies. The closing of the Acquisition is expected in the second half of calendar year 2021, subject to regulatory approvals and other customary closing conditions.