CAE has obtained necessary approvals from regulatory authorities for its planned purchase of L3Harris Technologies’ military training business for $1.05bn.
The company now expects that the previously announced acquisition will close on 2 July.
The acquisition will strengthen CAE’s presence as a ‘platform-agnostic’ training and simulation firm in the global defence and security industry.
CAE president and CEO Marc Parent said: “Following the closing, we are pleased to welcome L3Harris Military Training customers and employees to CAE.
“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.”
Upon completion of the acquisition, L3Harris’ military training business, which includes link simulation and training, Doss Aviation and AM, would operate under CAE USA.
With this acquisition, CAE’s core military training business in the US will almost be doubled.
The acquisition will also increase CAE’s expertise in addressing multi-domain operations in air, land, sea, space and cyber, as well as expanding into adjacent markets such as mission and operations support.
CAE Defence and Security Group president Daniel Gelston said: “This acquisition will bring scale, experience and capabilities that support our strategy to align closely with the National Defense Strategy in the United States.
“As the United States and its allies train for a near-peer threat, we expect increasing demand for simulation-based training and the use of synthetic environments across all battlespace domains.”
Last month, CAE reported an 18% drop in its annual revenue as demand for flight simulators and pilot drills remained weak due to the Covid-19 pandemic.