CAE receives regulatory approval to acquire L3Harris Technologies’ business
The acquisition of L3Harris' Military Training business will expand CAE's position as a platform-agnostic training and simulation company serving the global defence and security market.
Technology / IIoT
MONTREAL — On June 28, CAE announced that it has received all the required regulatory approvals for the previously announced acquisition of L3Harris Technologies’ Military Training business for US$1.05 billion subject to customary adjustments (the Acquisition) and expects closing to be complete on July 2, 2021.
The acquisition of L3Harris’ Military Training business will expand CAE’s position as a platform-agnostic training and simulation company serving the global defence and security market. The L3Harris Military Training business, which includes Link Simulation & Training, Doss Aviation and AMI, will be integrated with CAE USA. This will approximately double CAE’s core military training business in the United States. The Acquisition will also serve to broaden CAE’s ability to provide training and operational support solutions across multi-domain operations by diversifying CAE’s training and simulation leadership in the air domain, complementing land and naval training solutions, and enhancing CAE’s capabilities in space and cyber.
“Following the closing, we are pleased to welcome L3Harris Military Training customers and employees to CAE,” said Marc Parent, CAE’s President and Chief Executive Officer. “This represents the largest acquisition in our history and clearly demonstrates our strategy to strengthen and expand our position in all the markets CAE serves. We will be emerging from the pandemic much stronger and more ready to meet the growing demands of our customers.”
With this Acquisition, CAE will add experience in the development and delivery of training systems for fighter and bomber aircraft, US Army rotary-wing platforms, submarines and remotely piloted aircraft. CAE USA will become the prime contractor or key subcontractor on a range of programs, including the United States Air Force (USAF) Simulators Common Architecture Requirements and Standards (SCARS) program, USAF F-16 Simulators Training Program (STP), US Navy/Marine Corps F/A-18 aircrew training systems, USAF initial flight training, USAF Ground Based Strategic Deterrent (GBSD) training and USAF B-2 training system.
The Acquisition, which was first announced on March 1, 2021, is expected to provide low teens percentage EPS accretion for CAE within its first full year post-close and to be immediately accretive to operating income.