Canada-based training systems provider CAE says it has entered into a definitive agreement with L3Harris Technologies to acquire the L3Harris military training business in $1.05 billion deal.
The L3Harris military training business includes Link Simulation & Training, Doss Aviation and AMI.
L3Harris Link is one of the leading providers of military training solutions in the United States; Doss Aviation is the provider of initial flight training to the United States Air Force; and AMI is a design and manufacturing facility for simulator hardware.
Upon closing, the L3Harris Military Training business would operate under CAE USA, headquartered in Tampa, Florida. The closing of the acquisition is expected in the second half of calendar year 2021, subject to regulatory approvals.
CAE said the acquisition would expand its position as a platform-agnostic training systems integrator by diversifying the company’s training and simulation portfolio in the air domain, complementing land and naval training solutions.
“L3Harris Military Training will bring significant experience in the development and delivery of training systems for fighter and bomber aircraft, army rotary-wing platforms, submarines and remotely piloted aircraft,” CAE said in a statement.
It is worth noting that the acquisition will also bring a sizable backlog and position on several programs, including the 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 Ground Based Strategic Deterrent (GBSD) training and USAF B-2 training system.
“The proposed acquisition represents a significant value creation opportunity for all CAE stakeholders. It accelerates our growth strategy in defense and security and is highly complementary to our core military training business, broadening our position in the United States,” said Marc Parent, CAE’s president and chief executive officer. “We are adding new customers, experience on new platforms and building our depth of expertise to address all domains – air, land, sea, space and cyber – as well as expanding into adjacent markets such as mission and operations support.”
L3Harris Military Training is CAE’s fourth announced acquisition in the past four months.