CAE has announced plans to increase its stake in SIMCOM Aviation Training by acquiring a majority of shares from Volo Sicuro for CA$230 million (US$165.00 million). This purchase will be funded through CAE’s credit facility and existing cash, with the transaction expected to close shortly. As part of the deal, Flexjet, a Volo Sicuro affiliate, will retain a minority stake in SIMCOM, and both CAE and SIMCOM have extended exclusive training agreements with Flexjet for an additional five years, totalling a 15-year exclusivity period.
This move reinforces CAE’s focus on the business aviation training sector and is expected to enhance recurring revenue. Alexandre Prévost, CAE’s Division President of Business Aviation, highlighted that majority ownership of SIMCOM aligns CAE further with the expanding private jet and charter aviation markets, strengthening its strategic commitment to innovation and high-quality training services.
SIMCOM, known for its training across various business aircraft platforms, currently operates four U.S.-based centres, including its state-of-the-art facility in Lake Nona, Florida. The acquisition will likely boost CAE’s earnings and free cash flow within the first year after closing. With this investment, CAE solidifies its footprint in the growing business aviation training sector, leveraging cutting-edge training equipment such as the CAE 7000XR and CAE 400XR Series.
