CAE to increase ownership stake in Simcom Aviation Training joint venture

CAE (CAE) announced that it will increase its ownership stake in its existing Simcom Aviation Training joint venture by purchasing a majority of Simcom shares from Volo Sicuro for $230M, subject to customary adjustments, to be financed with CAE’s existing credit facility and cash on hand. As part of the transaction, Flexjet, a related party of Volo Sicuro, will retain a minority stake in Simcom following the closing, expected to take place in the coming days. Additionally, CAE and Simcom will each extend their respective exclusive business aviation training services agreement with Flexjet and its affiliates by 5 years. This results in a remaining exclusivity period of 15 years for both agreements. This significant organic investment will further solidify CAE’s presence in its core business aviation training market, increase recurring revenue streams, and reinforce its commitment to delivering world-class training solutions in business aviation. Its long-term exclusive training agreement with one of the world’s leading luxury private jet companies gives CAE even greater exposure to the rapidly growing fractional jet and charter aviation market. CAE expects this investment to be accretive to earnings and free cash flow in the first full-year post transaction.