Canada’s CAE this week said it has agreed to acquire the aerospace and defense business unit of Toronto-based regional communications provider Bell Aliant for up to $24.9 million.

The initial purchase price is $14.4 million with earn out provisions potentially adding another $10.5 million to the deal. The transaction is expected to close later this year.

The Defence, Security and Aerospace (DSA) business unit of Bell Aliant has 200 employees and supplies software and systems for simulation, training, defense, and integrated life-cycle information management for the aerospace and defense industries.

"We are happy to expand CAE’s defense capabilities and footprint across Canada, particularly in Ottawa, Atlantic Canada and British Columbia," Marc Parent, group president for Simulation, Products and Military Training and Services at CAE, said in a statement. He said the Bell Aliant defense business is already a partner on several CAE programs. "By joining CAE and our CAE Professional Services team, DSA’s professionals will provide us with a portfolio of complementary capabilities, including systems integration that will enhance CAE’s ability to serve Canada as well as the global defense and homeland security markets."

This expertise in systems integration complements CAE’s Military Support Services team located in Mirabel, Quebec, who offer systems engineering and integrated logistics support to operational fleets, such as Canada’s CF-18 aircraft fleet, which the team has supported for over 20 years, CAE said.

CAE also said the deal would help it expand the use of modeling and simulation through the defense systems life-cycle. DSA offers a suite of training products focused on rear crew trainers and mission rehearsal systems. The deal also would allow CAE to enter the electronic warfare, land command and control markets, and C4ISR markets, the company said.