CAE to buy L3Harris military training business for US$1.05 billion

·1 min read

MONTREAL — CAE Inc. says it has signed a deal 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.

CAE says the L3Harris businesses will add experience in the development and delivery of training systems for fighter and bomber aircraft, army rotary-wing platforms, submarines and remotely piloted aircraft.

To help pay for the deal, CAE will raise C$700 million in an agreement with Caisse de depot et placement du Quebec and GIC Private Ltd., a sovereign wealth fund based in Singapore.

CDPQ has agreed to invest $475 million in CAE in a move that it says will make it the company's largest shareholder, while GIC will contribute $225 million.

The closing of the acquisition is expected in the second half of this year, subject to regulatory approvals and other customary closing conditions.

This report by The Canadian Press was first published March 1, 2021.

Companies in this story: (TSX:CAE)

The Canadian Press