CAE to enter 15-year exclusive business aviation training services agreement with Directional Aviation Capital affiliates and acquire fifty-percent of SIMCOM
-- Flexjet, Flight Options, Flairjet, Sirio, Nextant Aerospace and Corporate Wings to train exclusively with SIMCOM and CAE
(NYSE:CAE) (TSX:CAE.TO) CAE announced today that it has entered into a strategic partnership with Directional Aviation Capital (DAC), one of the largest, fastest growing, and most innovative corporate aviation service companies globally.
As part of this transaction, CAE will form a joint venture with DAC's affiliate, Volo Sicuro, LLC and acquire for approximately US$85 million a fifty-percent stake in SIMCOM Holdings, Inc. In addition, 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.
"We are very pleased that Directional Aviation has chosen CAE to be its training partner of choice. Our investment in SIMCOM is another step in the expansion of CAE's business aviation training business that gives us access to a rapidly growing customer base as Directional Aviation affiliates' exclusive training partner for the next 15 years," said Marc Parent, CAE's President and CEO. "Both CAE and Directional are recognized for their innovative approach to business aviation, and we look forward to working with Directional affiliates and business partners and providing them with the most technologically enriched training programs, including our state-of-the-art simulation products and advanced digital solutions."
"Directional Aviation is charting the course of private aviation, worldwide. Today, we operate one of the largest business aviation fleets globally, and we plan on having significant growth in the future," said Kenn Ricci, Principal of Directional Aviation Capital. "With this partnership with CAE, our operators will have access to the latest solutions in aviation training from the industry leader."
"We have a clear vision for SIMCOM's future as an innovative training provider focused on the owner-flown market as well as fleet operators," said Eric Hinson, President and CEO, of SIMCOM. "We are extremely pleased to partner with CAE and leverage their industry leading technology and training expertise to better serve our customers."
About Directional AviationDirectional Aviation Capital is a private investment firm whose singular focus is private business aviation. Combining strategic aviation ownership, unmatched experience and revolutionary vision, Directional continues to innovate and reshape private aviation. Directional's unique industry expertise enables them to quickly understand business aviation companies and provide the financing and operational strategy needed to take advantage of evolving market opportunities. Directional's OneSky Flight portfolio of private jet travel providers includes shared ownership/fractional jet ownership, jet card, membership and on-demand charter providers. Industry leaders representing MRO, private jet remanufacturing, aviation parts distribution and more also make up the Directional family. Directional Aviation is charting the course of private aviation, worldwide. For more information, visit www.directionalaviation.com.
About SIMCOMA privately-owned, comprehensive learning institution, SIMCOM 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. SIMCOM currently operates 47 simulators representative of a wide range of jet, turboprop and piston powered aircraft. The company is headquartered in Orlando, Florida, where it also operates two training centers. Additional training centers are located in Scottsdale, Arizona, and Humberside, United Kingdom.
About CAECAE is a global leader in training for the civil aviation, defence and security, and healthcare markets. Backed by a record of more than 70 years of industry firsts, we continue to help define global training standards with our innovative virtual-to-live training solutions to make flying safer, maintain defence force readiness and enhance patient safety. We have the broadest global presence in the industry, with over 10,000 employees, 160 sites and training locations in over 35 countries. Each year, we train more than 220,000 civil and defence crewmembers, including more than 135,000 pilots, and thousands of healthcare professionals worldwide. www.cae.com Follow us on Twitter: CAE_Inc
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