Intelligence Center


HOME PRODUCTS & SERVICES MEDIA CENTER CONSULTING SERVICES DEMOS SALES OFFICES OUR COMPANY LOG IN

AEROSPACE & DEFENSE ELECTRONICS
AIRLINES, COMMERCIAL AVIATION & MAINTENANCE
AVIATION ENGINES, PROPULSION & AUXILIARY POWER UNITS
INDUSTRIAL & MARINE GAS TURBINES
INTERNATIONAL MILITARY MARKETS & BUDGETS - ASIA, AUSTRALIA & PAC RIM/EURASIA
INTERNATIONAL MILITARY MARKETS & BUDGETS - EUROPE
INTERNATIONAL MILITARY MARKETS & BUDGETS - NORTH AMERICA
MILITARY AIRCRAFT
MILITARY VEHICLES, ORDNANCE, MUNITIONS, AMMUNITION & SMALL ARMS
MISSILES & MISSILE SYSTEMS
NAVAL SHIPS AND OPERATING SYSTEMS
NON-US AEROSPACE/DEFENSE COMPANIES & CONTRACTS
REGIONAL, BUSINESS & GENERAL AVIATION
ROTORCRAFT
SPACECRAFT, LAUNCH VEHICLES & SATELLITES
US AEROSPACE/DEFENSE COMPANIES & CONTRACTS
Drones and Unmanned Systems - Air, Sea, Land, Micro & Robot Systems
UTILITIES, ROTATING MACHINERY & POWER GENERATION

 
CAE TO ACQUIRE BOMBARDIER BUSINESS AIRCRAFT TRAINING
Thursday, November 8, 2018
Click image for a larger picture

Global 7500

Source: Bombardier


Global 7500

Source: Bombardier


Close
MONTREAL -- CAE has agreed to acquire Bombardier's Business Aircraft Training (BAT) business for a value of $645 million. The BAT business includes a fleet of full-flight simulators (FFS) and training devices covering Bombardier's Learjet, Challenger, and Global business jet product lines. The acquisition is subject to regulatory approvals, and is expected to close by the second half of 2019.

In addition to the agreement to acquire the BAT business, CAE has agreed to pay $155 million to monetize its existing future royalty obligations under its current Authorized Training Provider (ATP) agreement with Bombardier. This also involves the extension of CAE's ATP agreement to 2038. The monetization represents the discounted sum of royalties payable by CAE over the next 20 years; this transaction is expected to close by the end of CAE's current fiscal year.

"CAE is the largest independent civil aviation training company in the world, and we are proud to support the many business aircraft operators, airlines, and aircraft manufacturers who rely on CAE as their partner of choice for the most comprehensive and innovative training solutions," said Marc Parent, CAE President and CEO. "This transaction represents a win-win for both companies, resulting in enhanced core focus. We look forward to having increased addressability in the large market of Bombardier business jet operators, and to providing customers with a world-class training experience. Market fundamentals in business aviation are strong and the business we are acquiring is well supported by a large installed base. We are expanding our position in the largest and fastest-growing segment of business aviation training at an opportune time."

The BAT business is to be integrated with CAE, as its operations are already co-located within CAE's Dallas and Montreal training centers.

With the agreement, CAE would be adding 12 Bombardier business aviation full-flight simulators to its training network (including one deployment already planned), for a total of 29 business aviation simulators available for training worldwide. CAE operates more than 80 business aviation full-flight simulators in its training network.

CAE plans to finance the acquisition with a combination of cash on hand, drawing on its existing bank facility, and new committed term loans.

Source:  CAE
Source Date: November 8, 2018
Posted: 11/08/2018

 

NOTICE TO USERS

Warranty: Forecast International makes no guarantees as to the veracity or accuracy of the information provided. It warrants only that the information, which has been obtained from multiple sources, has been researched and screened to the best of the ability of our staff within the limited time constraints. Forecast International encourages all clients to use multiple sources of information and to conduct their own research on source data prior to making important decisions. All URLs listed were active as of the time the information was recorded. Some hyperlinks may have become inactive since the time of publication.

Technical Support: Phone (203)426-0800 e-mail support@forecast1.com

Subscription Information: Phone (203)426-0800 or (800)451-4975; FAX (203)426-0223 (USA) or e-mail sales@forecast1.com

Aerospace/Defense News Highlights is published by Forecast International, 22 Commerce Road, Newtown CT 06470 USA. Articles that list Forecast International as the source are Copyrighted © 2018. Reproduction in any form, or transmission by electronic or other means, is prohibited without prior approval from the publisher.

Forecast International invites all interested companies to submit their announcements and press releases for review and inclusion in our Intelligence Letters.

Contact: Ray Peterson, Director of Research
E-Mail: Ray.Peterson@forecast1.com
Phone: 800-451-4975
FAX: 203-270-8919



HOME PRODUCTS & SERVICES MEDIA CENTER CONTACT US PRIVACY STATEMENT TERMS AND CONDITIONS

Forecast International © 2018 22 Commerce Rd Newtown, CT 06470 USA Phone: 203.426.0800 Toll-Free: 800.451.4975 (USA & Canada) Fax: 203.426.0223 info@forecast1.com