CAE flight simulator
Under a $645 million deal with Bombardier, CAE will gain 12 more full-flight business aircraft simulators, such as this Challenger 604 device, bringing its total simulators in this market segment to 29 worldwide. In addition, CAE will be the authorized training provider for Bombardier business jets through at least 2038. (Photo: CAE)

CAE To Buy Bombardier's Bizav Training Biz for $645M

CAE will acquire Bombardier’s business aircraft training business unit for $645 million, expanding its access to the training market for customers operating the more than 4,800 in-service Bombardier business jets, the companies recently announced. Subject to regulatory approvals, the deal is expected to close in the second half of next year.

The acquisition is “highly complementary“ to CAE’s existing business and will expand its position in the largest and fastest-growing segment of the business aviation training market—midsize and large-cabin jets. It will also provide CAE with a pool of skilled employees and a portfolio of customers, in addition to 12 full-flight simulators (FFSs) and several training devices covering the Learjet, Challenger, and Global lines. This will increase the number of CAE’s business aircraft FFSs to 29 worldwide.

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It’s named after the French word for “cloud.”

According to CAE, the deal will also enhance its ability to address the long-term and growing market demand for business aviation professionals. CAE estimates that there will be a need for 50,000 new business aviation pilots over the next decade.

Also under the agreement, CAE will pay Bombardier $155 million to monetize its existing future royalty obligations under the current authorized training provider agreement with the business jet manufacturer. This provision also extends CAE’s authorized training agreement with Bombardier to 2038.

“This transaction represents a win-win for both companies, resulting in enhanced core focus,” said CAE president and CEO Marc Parent. “Market fundamentals in business aviation are strong and the business we are acquiring is well supported by a large installed base.”

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