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Press Release ● ● ● ● ● CAE to acquire L3Harris Technologies ' Military Training business for US $ 1.05 billion CAE Acquisition highly complementary to CAE's core military training business in the United States Broadens CAE's position in training and simulation across multi - domain operations Low - teens percentage EPS accretion expected within first full year post closing , including expected cost synergies Expected to be immediately accretive to Defence & Security operating profit and EBITDA ( ¹ ) margins on operational efficiencies Funding structure consistent with CAE's investment grade profile Transaction builds on CAE's track record of successful acquisitions Montreal , March 1 , 2021 – ( NYSE : CAE ; TSX : CAE ) – CAE today announced that it has entered into a definitive agreement with L3Harris Technologies ( NYSE : LHX ) to acquire L3Harris ' Military Training business for US $ 1.05 billion , subject to customary adjustments ( the " Acquisition " ) . The Acquisition value represents approximately 13.5 times the L3Harris Military Training business estimated adjusted 2020 EBITDA ( ¹ ) or approximately 10 times , including cost synergies , which are expected to reach a range of C $ 35 to C $ 45 million ( approximately US $ 28 to US $ 35 million ) annually by the end of the second year following closing of the Acquisition . The Acquisition is expected to be low - teens percentage EPS accretive to CAE in the first full year post closing , including expected cost synergies . The closing of the Acquisition is expected in the second half of calendar year 2021 , subject to regulatory approvals and other customary closing conditions . The L3Harris Military Training business includes Link Simulation & Training , Doss Aviation and AMI . L3Harris Link is one of the leading providers of military training solutions in the United States ; Doss Aviation is the provider of initial flight training to the United States Air Force ( USAF ) ; and AMI is a design and manufacturing facility for simulator hardware . Upon closing , the L3Harris Military Training business would operate under CAE USA , headquartered in Tampa , Florida . The Acquisition will expand CAE's position as a platform - agnostic training systems integrator by diversifying CAE's training and simulation leadership in the air domain , complementing land and naval training solutions , and enhancing CAE's training and simulation capabilities in space and cyber . L3Harris Military Training will bring significant experience in the development and delivery of training systems for fighter and bomber aircraft , Army rotary - wing platforms , submarines and remotely piloted aircraft . L3Harris Military Training will also bring a significant backlog and position on key programs , including the USAF Simulators Common Architecture Requirements and Standards ( SCARS ) program , USAF F - 16 Simulators Training Program ( STP ) , US Navy / Marine Corps F / A - 18 aircrew training systems , USAF Ground Based Strategic Deterrent ( GBSD ) training and USAF B - 2 training system . " The proposed acquisition represents a significant value creation opportunity for all CAE stakeholders . It accelerates our growth strategy in Defence and Security and is highly complementary to our core military training business , broadening our position in the United States , " said Marc Parent , CAE's President and Chief Executive Officer . " We are adding new customers , experience on new platforms and building our depth of expertise to address all domains - air , land , sea , space and cyber - as well as expanding into adjacent markets such as mission and operations support . This proposed transaction will provide greater balance to CAE across businesses and geographies , and like our recent acquisitions in the civil aviation market , it demonstrates our focus on bolstering and expanding our position in the markets we serve . We are making investments with a view to emerge from the pandemic stronger and prepared to meet the growing demands of our customers . " 1