Canada-based CAE civil aviation training company has announced its entry into an exclusive business aviation training services agreement with Directional Aviation Capital (DAC), the company said.
As part of this transaction, CAE will form a joint venture with DAC´s affiliate, Volo Sicuro, LLC and for USD 85 million, it will acquire a 50% stake in SIMCOM Holdings, Inc.
DAC´s affiliated business aircraft operators, which include Flexjet, Flight Options, Flairjet, Sirio, Nextant Aerospace and Corporate Wings, will enter into a 15-year exclusive training services agreement with SIMCOM and with CAE. Together, these aircraft operators have a rapidly growing fleet of approximately 175 business aircraft. In addition, to enhance its training offering, SIMCOM will purchase equipment from CAE´s latest product offering, including five full flight simulators. The transaction is subject to customary closing conditions.
Directional Aviation Capital is a private investment firm whose singular focus is private business aviation.
SIMCOM is a privately-owned, comprehensive learning institution, which utilizes realistic simulator-based training to provide advanced aviation training services to professional pilots, owner-operators, Part 135 operators and maintenance personnel operating in general aviation, regional, military, government and cargo operations around the world.
CAE (NYSE: CAE) (TSX: CAE) offers training for the civil aviation, defence and security, and healthcare markets.