WASHINGTON — CAE has has announced its intention to acquire the military aviation training unit of Bombardier.

The agreement, worth CAN $19.8 million (US $15.9 million), boosts CAE's already large portfolio of military aerospace training contracts.

The deal is expected to be completed sometime this year, pending approval from regulatory authorities.

In a statement released by CAE, President and CEO Marc Parent, the company's president and CEO, said the purchase "significantly enhances CAE's core capabilities as a training systems integrator."

"As a training systems integrator for air forces globally, tThis addition to CAE gives us another important capability and opportunity for growth," Parent said. "We are happy to welcome Bombardier's Military Aviation Training team to CAE."

One of the major programs coming over to CAE is the NATO Flying Training in Canada (NFTC) program, in which allied pilots are trained at locations in Moose Jaw, Saskatchewan, and Cold Lake, Alberta. Canada, Denmark, the UK, Singapore, Italy, Hungary, Austria and the United Arab Emirates have all participated in that program in the past.

Parent said CAE plans to "expand" the NFTC program once the sale is completed.

While the dollar value may be small by defense industry standards, the deal is notable as a potential indicator of where the training and simulation industry is going.

At December's I/ITSEC training and simulation conference, industry leaders largely agreed that contraction is coming.

Gene Colabatistto, group president for defense with CAE, told Defense News at the show that while some contraction is likely, his company is careful about acquiring firms simply to grow, rather than to add specific value.

"I think there will continue to be acquisitions," Colabatistto said at the time. "But to make a large play in the market is difficult with budget uncertainty and then in the smaller companies, the way they are classified makes it very risky."

Email: amehta@defensenews.com

Twitter: @AaronMehta

About Aaron Mehta

Aaron Mehta was deputy editor and senior Pentagon correspondent for Defense News, covering policy, strategy and acquisition at the highest levels of the Defense Department and its international partners.

Share:
More In Training & Sim