CAE’s acquisition of military training company L3Harris is expected to close on Friday; Daniel Gelston, Marc Parent cited

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CAE announced that it expects to complete its $ 1.05 billion acquisition of the military training business of L3Harris Technologies (NYSE: LHX) on Friday, July 2, after obtaining all regulatory approvals necessary to complete the transaction.

The deal was first announced in March and CAE said Monday that L3Harris’ military training segment will allow it to expand its presence as a platform independent training and simulation company in the market. global defense and security.

“This acquisition will bring scale, experience and capabilities that support our strategy to closely align with the national defense strategy in the United States,” said Daniel Gelston, group president for defense and security at CAE. “As the United States and its allies train for a near-peer threat, we expect an increasing demand for simulation-based training and the use of synthetic environments in all areas of space. of battle. “

Gelston added that the transaction will strengthen CAE’s ability to provide digitally immersive platforms for the operational and training support needed for multi-domain operations.

“This is the largest acquisition in our history and clearly demonstrates our strategy to strengthen and expand our position in all markets served by CAE,” said Marc Parent, President and CEO of CAE.

Doss Aviation, the AMI simulator hardware manufacturing plant, Link Simulation & Training and other components of the military training company L3Harris will operate as part of CAE’s US branch based in Tampa, Florida.

CAE USA will acquire capabilities in the development of training systems for US Army bombers and fighters, submarines, remotely piloted aircraft and rotary wing platforms. The American subsidiary will also have the opportunity to work on the training programs on strategic ground deterrence and on the common architecture simulators of the requirements and standards of the US Air Force, among other initiatives, as a master of work or subcontractor.

CAE expects the transaction to increase operating income and generate a low percentage of earnings per share in the first full year after closing.

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