CAE To Buy Bombardier's Bizav Training Biz for $645M
Acquisition is “highly complementary “ to CAE and will expand its position in the largest and fastest-growing segment of the bizav training market.
CAE will acquire Bombardier’s business aircraft training business unit for $645 million, expanding its access to the training market for customers operating the more than 4,800 in-service Bombardier business jets, the companies recently announced. Subject to regulatory approvals, the deal is expected to close in the second half of next year.
The acquisition is “highly complementary“ to CAE’s existing business and will expand its position in the largest and fastest-growing segment of the business aviation training market—midsize and large-cabin jets. It will also provide CAE with a pool of skilled employees and a portfolio of customers, in addition to 12 full-flight simulators (FFSs) and several training devices covering the Learjet, Challenger, and Global lines. This will increase the number of CAE’s business aircraft FFSs to 29 worldwide.
According to CAE, the deal will also enhance its ability to address the long-term and growing market demand for business aviation professionals. CAE estimates that there will be a need for 50,000 new business aviation pilots over the next decade.
“This transaction represents a win-win for both companies, resulting in enhanced core focus,” said CAE president and CEO Marc Parent. “Market fundamentals in business aviation are strong and the business we are acquiring is well supported by a large installed base.”