CAE is increasing its ownership stake in business aviation training provider Simcom and extending an exclusive training agreement with Flexjet.
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CAE is increasing its ownership stake in business aviation training provider Simcom and extending an exclusive training agreement with aircraft fractional share firm Flexjet and its affiliates. Under the deal announced this week, Simcon is purchasing a majority of Simcom shares from Volo Sicuro for $230 million, leaving joint venture partner Flexjet with a minority stake in the training provider following the closing “in the coming days.”
Additionally, CAE and Simcom will each extend their respective exclusive business aviation training services agreement with Flexjet and its affiliates by five years. This results in a remaining exclusivity period of 15 years for both agreements.
According to CAE, this investment will further solidify the company’s presence in its core business aviation training market, increase recurring revenue streams, and reinforce its commitment to delivering training solutions in this market segment. Meanwhile, the Flexjet training agreement extension gives CAE greater exposure to the growing fractional jet and charter aviation market.
“We are delighted to increase our investment in this core area and achieve majority ownership of Simcom to strengthen our position in the business aviation market, as well as extend our long-standing partnership with Flexjet, one of the leading and fastest-growing private jet companies,” said CAE business aviation division president Alexandre Prévost. “This highlights our commitment to continuing to drive innovation and provide industry-leading technology to better serve our business aviation customers.”
Orlando, Florida-based Simcom operates four training centers in the U.S.—three in Central Florida and one in Scottsdale, Arizona.
CAE is increasing its ownership stake in business aviation training provider Simcom and extending an exclusive training agreement with aircraft fractional share firm Flexjet and its affiliates. Under the deal announced this week, Simcon is purchasing a majority of Simcom shares from Volo Sicuro for $230 million, leaving joint venture partner Flexjet with a minority stake in the training provider following the closing “in the coming days.”
Additionally, CAE and Simcom will each extend their respective exclusive business aviation training services agreement with Flexjet and its affiliates by five years. This results in a remaining exclusivity period of 15 years for both agreements.
According to CAE, this investment will further solidify the company’s presence in its core business aviation training market, increase recurring revenue streams, and reinforce its commitment to delivering training solutions in this market segment. Meanwhile, the Flexjet training agreement extension gives CAE greater exposure to the growing fractional jet and charter aviation market.
“We are delighted to increase our investment in this core area and achieve majority ownership of Simcom to strengthen our position in the business aviation market, as well as extend our long-standing partnership with Flexjet, one of the leading and fastest-growing private jet companies,” said CAE business aviation division president Alexandre Prévost.