Also Extends Training Agreement With FlexJet And Affiliates

CAE announced it will increase its ownership stake in its existing SIMCOM Aviation Training (SIMCOM) joint venture by purchasing a majority of shares from Volo Sicuro for $230 million, subject to customary adjustments.

The purchase will be purchased through CAE’s cash on hand and its existing credit facility. As part of the transaction, FlexJet, related to Volo Sicuro, will retain a minority stake in SIMCOM following the closing to be completed in the near future.

As an additional provision of the transaction, CAE and SIMCOM will extend their existing exclusive business aviation training services agreement with FlexJet and its affilitates for an additional 5 years. This results in a remaining exclusivity period of 15 years for both agreements.

This significant investment will solidify even more, CAE’s presence in its core business aviation training market and enhance existing revenue streams. Its long-term exclusive training agreement with one of the world's largest luxury private jet companies gives CAE greater exposure to the growing fractional and charter aviation market.

Alexandre Prévost, CAE’s Division President, Business Aviation said, “We are delighted to increase our investment in this core area and achieve majority ownership of SIMCOM to strengthen our position in the business aviation market, as well as extend our long-standing partnership with Flexjet, one of the leading and fastest growing private jet companies. This highlights our commitment to continuing to drive innovation and provide industry-leading technology to better serve our business aviation customers.”

FMI:  www.simulator.com/