CAE raises $ 450 million to buy Flight Simulation Company

Montreal flight simulator CAE raised some $ 450 million on Monday, including an investment from the Caisse de dépôt, which allows it to get its hands on one of its European competitors.

The Quebec flagship first explained, in a press release, having acquired Flight Simulation Company BV for 70 million euros (approximately 108 M $ CAN).

Launched in 2006, this Dutch company offers pilot training to some 160 airlines around the world. Its simulators mainly recreate Boeing aircraft, but also Airbus (A320 and A330), as well as the Dornier 328JET and Embraer 190.

This customer catalog is of particular interest to CAE, recognized the company as it plans to “take advantage of a larger customer base and leverage a well-established business.”

“CAE, which has strong capital resources, is well positioned in the current environment to expand its market presence through targeted value-based acquisitions. The acquisition of FSC will allow CAE to serve its customers even better and expand its potential market, ”said CAE President and CEO Marc Parent.

At the same time as this acquisition, the Montreal-based company announced that it had raised an amount of some $ 450 million, among other things to finance the purchase of Flight Simulation Company.

Of this amount, $ 150 million comes from the Caisse de dépôt et placement du Québec (CDPQ), which has decided to invest in CAE.

“Our investment is part of a desire to support a resilient Quebec company of the caliber of CAE in its recovery and growth efforts,” explained the Senior Vice-President and Head of Investments in Quebec and Sustainable Investment to the CDPQ, Kim Thomassin, by press release.

The remaining $ 300 million will come from the launch of just over 10,060,000 shares priced at $ 29.85.

“CAE intends to use the net proceeds from the Offering and the Concurrent Private Placement for general corporate purposes, including to fund its potential future growth and acquisition opportunities, which includes financing the acquisition of Flight Simulation Company. BV ”, underlined the Montreal flagship.

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