CAE, a Montreal-based provider of training and operational support for the civil aviation, defense and security and health care markets, has agreed to acquire TRU Simulation + Training Canada from Textron. The purchase price is about US$40 million. CAE is backed by Caisse de dépôt et placement du Québec.
MONTREAL, Nov. 24, 2020 /CNW/ – (NYSE: CAE) (TSX: CAE) – CAE today announced that it has concluded a conditional agreement with Textron (NYSE: TXT) to acquire TRU Simulation + Training Canada Inc. (TRU Canada) for a cash consideration of approximately US$40 million, excluding post-closing adjustments. The closing of the transaction is subject to customary conditions and regulatory approvals.
The acquisition of TRU Canada expands CAE’s global installed base of commercial flight simulators and customers, and the addressable market for simulator lifecycle support services. TRU Canada also brings with it a backlog of simulator orders, full-flight simulator assets and provides access to a number of airline customers globally.
TRU Canada is CAE’s second announced acquisition in the last two weeks and demonstrates the Company’s commitment to deploying the capital it is raising to strengthen the Company’s position across its markets. The acquisition is aligned with CAE’s strategic priorities and meets the strict financial parameters it has in place. It is expected to be accretive to earnings in its first full year.
“We look forward to integrating the TRU Canada business within CAE. This acquisition demonstrates our ability to bolster our position and expand our addressable market and our global customer base during this unprecedented period of disruption. Along with the recently announced FSC acquisition, we have been able to make investments that are expected to better enable CAE to meet the global demands of our customers in support of their training and simulation needs,” said Marc Parent, CAE’s President and Chief Executive Officer.
CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As a testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites and training locations in over 35 countries. www.cae.com