CAE to Buy L3Harris’s Military-Training Business

CAE Inc. agreed to buy L3Harris Technologies Inc.’s military-training division for $1.05 billion, the companies said Monday, in a move that would expand the Canadian aerospace company’s defense business.

The unit includes three main businesses: Link, which provides military training in the U.S.; Doss Aviation, which provides flight training to the U.S. Air Force; and AMI, which designs and makes simulator hardware. The business, which has about $500 million in annual revenue, is expected to be based in Tampa, Fla., after the deal’s close, the company said.

The Wall Street Journal reported Sunday that such a deal was imminent.

Saint-Laurent, Quebec-based CAE expects the deal to be accretive to earnings per share and forecasts cost savings of roughly 35 million to 45 million Canadian dollars a year in the second year post-close. It is to be funded by a private placement of roughly C$700 million, equivalent to about $549.4 million.

CAE has a market value of around C$9.5 billion. It has historically specialized in flight simulators and training devices and has been broadening its reach through several deals in recent months, though none anywhere near the size of the deal being discussed for the L3Harris unit.

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