Canada’s CAE on Wednesday said it has agreed to acquire portions of Textron’s [TXT] TRU Simulation + Training subsidiary for $40 million in cash in a deal that expands its customer base for installed commercial flight simulators and the market for simulator life-cycle support services.
Textron’s TRU Simulation + Training business develops, manufactures and services flight and maintenance training devices for the civil and defense aviation markets. Products include portable desktop devices, fixed-base training devices and full-motion simulators for fixed-wing and rotary-wing aircraft.
The acquisition includes TRU Simulation + Training Canada, training service entities in France and Malaysia, and a minority interest in a joint venture in Ireland. TRU Canada has about 80 employees.
Textron said that TRU Simulation + Training operations in Tampa, Fla., which are focused on the development of simulators for Textron Aviation and rotorcraft platforms, are not included in the deal.
The deal is subject to regulatory approvals and is expected to close during the fourth quarter or in early 2021.
CAE said the acquisition will expand its installed base by more than 60 commercial flight simulators.
“This acquisition demonstrates our ability to bolster our position and expand our addressable market with our global customer base during this unprecedented period of disruption,” Mark Parent, president and CEO of CAE, said in a statement. “Along with the recently announced FSC acquisition, we have been able to make investment that are expected to better enable CAE to meet the global demands of our customers in support of their training and simulation needs.”
CAE also said the deal adds to its backlog and provides access to new customers.