CAE completes GIC-backed acquisition of L3Harris Technologies’ Military Training business

U.S. five dollar currency notes bills; taken September 2018.U.S. five dollar currency notes bills; taken September 2018.

CAE has completed the acquisition of L3Harris Technologies’ Military Training business for US$1.05 billion, in a deal with institutional backing from Singapore sovereign wealth fund GIC and Caisse de dépôt et placement du Québec (CDPQ), the Canada-based company said in a press release Friday.

The acquisition was partially funded with the net proceeds of private placement of around C$700 million, or around US$550 million, in shares issued to CDPQ and GIC, the statement said. Around 22.4 million common shares of CAE were issued in the placement, the statement said.

In a March statement, CAE said GIC would take up C$225 million, or around US$175 million, of the placement, while Canada-based institutional investor CDPQ would take up C$475 million, or around US$375 million.

CAE, which is listed in Toronto and New York, is a technology company specializing in training and operational support for civil aviation, defense and security, and healthcare.

The L3Harris Military Training business includes Doss Aviation, which provides initial flight training to the U.S. Air Force; AMI, which is a design and manufacturing facility for simulator hardware; and Link Simulation & Training, which is a military training service provider in the U.S.

In March, CAE said the acquisition would expand its position as a training systems integrator by diversifying its offerings in the air domain, complementing land and naval training services, and improving its offerings in the space and cyber sectors.

CDPQ manages funds for public retirement and insurance plans; it had net assets of C$365.5 billion at end-2020.

GIC, which manages Singapore’s foreign reserves, has around $453.2 billion under management, according to data from the Sovereign Wealth Fund Institute.