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CAE Announces Sale of its Healthcare Business for $311 million CAD

CAE announced that it has reached a definitive agreement to sell CAE’s Healthcare business to Chicago-based Madison Industries for an enterprise value of C$311 million, subject to customary adjustments.

“We are proud of the significant contribution to patient safety that CAE Healthcare has made,” said Marc Parent, President and CEO of CAE. “The business is growing under a strong leadership team and has reached a point where the opportunity exists to take it to the next level. We believe Madison Industries is well positioned to support the future growth of the Healthcare business, which will continue to focus on evolving simulation to drive patient safety and quality outcomes.”

“This decision to streamline our portfolio better positions CAE to efficiently allocate capital and resources to secure the many attractive growth opportunities on the horizon in our much larger, core simulation and training markets,” he continued.

“Madison Industries is on a mission to make the world safer, healthier, and more productive,” said Larry Gies, Madison Industries’ founder and Chief Executive Officer. “Our platform is designed to empower companies whose products make our lives better and build these companies into the market leaders of tomorrow.”

“At Madison, we are excited to expand upon the heritage of innovation that CAE Healthcare has built,” he continued. “With a talented workforce in the United States, Europe, and world leading R&D capabilities in Quebec, we will look to rapidly accelerate and progress simulation and quality outcomes with the most complete set of clinical training tools available.”

Closing of the transaction, which is subject to closing conditions, including customary regulatory approvals, is expected before the end of fiscal year 2024. Sale proceeds will be principally used to accelerate deleveraging, as well as to support CAE’s continued focus on technology advancement, market leadership and cost optimization within its core training and simulation markets.

CAE has engaged National Bank Financial Inc. as its exclusive financial advisor for this transaction.

 

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