CAE acquires L3Harris Technologies’ Military Training business
June 28, 2021 By Naomi Szeben
CAE announced that it has received all the required regulatory approvals for the acquisition of L3Harris Technologies’ Military Training business.
The acquisition was made for US$1.05 billion subject to customary adjustments expects closing to be complete on July 2, 2021.
CAE’s will expand its position as a platform-agnostic training and simulation company serving the global defence and security market through this acquisition, effectively doubling CAE’s core military training business in the United States. The L3Harris Military Training business will be integrated with CAE USA. 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.
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.