Hard on the heels of the divestiture of its Canadian commercial avionics operation, UK defence giant BAE Systems has agreed to sell its US-based flight simulation subsidiary to leading simulator manufacturer CAE of Canada. CAE will buy Tampa, Florida-based BAE Systems Flight Simulation and Training, formerly Reflectone, for $80 million.
BAE and CAE will also "explore a strategic relationship addressing military training opportunities globally". The purchase of the BAE unit, which specialises in simulators for military helicopters and the Lockheed Martin C-130, will give CAE increased access to the US defence market. The unit had revenues of $80 million last year.
CAE has set aggressive profit goals, and has already launched several new initiatives in the commercial flight simulation market, including entering the airline flight-training business. The new buy and strategic relationship with BAE will boost its military unit.