CAE announced that it has entered into a definitive agreement with L3Harris Technologies to acquire L3Harris’ Military Training business for US$1.05 billion. The acquisition value represents approximately 13.5 times the L3Harris Military Training business estimated adjusted 2020 EBITDA or approximately 10 times, including cost synergies, which are expected to reach a range of approximately US$28 million to US$35 million annually by the end of the second year following closing of the acquisition.
The acquisition is expected to be low-teens percentage EPS accretive to CAE in the first full year post closing, including expected cost synergies. The closing of the acquisition is expected in the second half of calendar year 2021, subject to regulatory approvals and other customary closing conditions.
The L3Harris Military Training business includes Link Simulation & Training, Doss Aviation and AMI. L3Harris Link is one of the leading providers of military training solutions in the United States;...MORE.
