CAE announced on November 4, 2024, its plan to increase its ownership stake in the SIMCOM Aviation Training joint venture by acquiring a majority of SIMCOM shares from Volo Sicuro for USD $230 million. This investment will be financed using CAE's existing credit facility and cash on hand, with Flexjet, a related party, retaining a minority stake in SIMCOM.
As part of this transaction, CAE and SIMCOM will each extend their exclusive business aviation training services agreement with Flexjet and its affiliates by five years, resulting in a remaining exclusivity period of 15 years for both agreements. This strategic move is designed to solidify CAE's presence in the business aviation training market and increase recurring revenue streams.
CAE anticipates that this investment will be accretive to both earnings and free cash flow in the first full year following the transaction. The increased stake and extended agreement reinforce CAE's commitment to delivering world-class training solutions and gaining greater exposure to the rapidly growing fractional jet and charter aviation market.
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