CAE Gets Regulatory Approvals To Buy L3Harris' Military Training Unit; Deal To Close On July 2

(RTTNews) - Canadian aviation training specialist CAE Inc. (CAE, CAE.TO) announced Monday that it has received all the required regulatory approvals for its planned acquisition of L3Harris Technologies' (LHX) Military Training business for $1.05 billion, subject to customary adjustments.

The acquisition, which was first announced on March 1, is expected to provide low teens percentage earnings per share accretion for CAE within its first full year post-close and to be immediately accretive to operating income.

The deal is expected to be complete on July 2, 2021.

The acquisition of L3Harris' Military Training business would expand CAE's position as a platform-agnostic training and simulation company.

Following the deal closure, the L3Harris Military Training business, which includes Link Simulation & Training, Doss Aviation and AMI, will be integrated with CAE USA. This will almost double CAE's core military training business in the United States.

Daniel Gelston, Group President, Defence & Security, CAE, said, "As the United States and its allies train for a near-peer threat, we expect increasing demand for simulation-based training and the use of synthetic environments across all battlespace domains. This Acquisition will significantly strengthen our ability to provide the digitally immersive solutions for training and operational support that are needed for multi-domain operations."