CAE and Bombardier have signed an agreement for CAE's acquisition of Bombardier's Military Aviation Training business including NATO Flying Training in Canada for approximately C$19.8 million.
The closing of the transaction is conditional on usual conditions and regulatory approvals, and if those are obtained closing is expected to occur during 2015.
This move significantly enhances CAE's core capabilities as a training systems integrator (TSI) globally, and expands its offering into support for live flying training of future military pilots, including next-generation fighter pilots, for the Royal Canadian Air Force and its allies.
Upon conclusion of this transaction, CAE will be the prime contractor responsible for the NATO Flying Training in Canada (NFTC) program that produces qualified military pilots for defence customers.
"As a training systems integrator for air forces globally, this addition to CAE gives us another important capability and opportunity for growth," said Marc Parent, CAE's President and Chief Executive Officer.
“We plan to expand the NFTC program, and leverage our new capabilities into future integrated training systems programs worldwide."
The NFTC program operates out of Moose Jaw, Saskatchewan and Cold Lake, Alberta and is designed and operated in partnership with the Government of Canada. The program combines basic, advanced, and lead-in fighter training as part of the comprehensive pilot training program.
CAE will operate the NFTC base facilities, deliver the ground-school classroom and simulator training, and support the live flying training that comprises this world-class turnkey training system.