CAE Inc. with its increased ownership stake in SIMCOM Aviation Training
Canada | November 28, 2024
Client: CAE Inc.
Lawyers:
Our Montréal, Toronto, Ottawa, Dallas, Houston, Washington, Chicago and St. Louis offices acted for CAE Inc. in connection with increasing its ownership stake in its existing SIMCOM Aviation Training (SIMCOM) joint venture by purchasing a majority of SIMCOM shares from Volo Sicuro for USD $230 million, subject to customary adjustments. As part of the transaction, Flexjet, LLC, a related party of Volo Sicuro, has retained a minority stake in SIMCOM. Additionally, CAE and SIMCOM have each extended their respective exclusive business aviation training services agreement with Flexjet and its affiliates by 5 years. This results in a remaining exclusivity period of 15 years for both agreements.
This transaction is significant as it will further solidify CAE’s presence in its core business aviation training market, increase recurring revenue streams, and reinforce its commitment to delivering world-class training solutions in business aviation. Its long-term exclusive training agreement with one of the world’s leading luxury private jet companies gives CAE even greater exposure to the rapidly growing fractional jet and charter aviation market.
This transaction is significant as it will further solidify CAE’s presence in its core business aviation training market, increase recurring revenue streams, and reinforce its commitment to delivering world-class training solutions in business aviation. Its long-term exclusive training agreement with one of the world’s leading luxury private jet companies gives CAE even greater exposure to the rapidly growing fractional jet and charter aviation market.