CAE awarded contract from Boeing to develop P-8A operational flight trainer for Royal New Zealand Air Force

Montreal, February 8, 2021

CAE will design and manufacture a P-8A flight simulator for the Royal New Zealand Air Force similar to the P-8A operational flight trainer shown above already delivered to the U.S. Navy.

On the eve of the start of the CAE OneWorld 2021 virtual conference and tradeshow, CAE today announced that during its fiscal third quarter Boeing ordered a P-8A operational flight trainer (OFT) for the Royal New Zealand Air Force (RNZAF).

CAE will design and manufacture the hardware for the RNZAF’s P-8A flight simulator.  In addition, CAE will develop a suite of P-8A Aircraft Equipment enhanced Desktop Environment (AeDTE) trainers, which will be used as role playing stations during training of P-8A aircrews.  The P-8A OFT and AeDTEs are scheduled for delivery to RNZAF Base Ohakea in 2023.

The CAE OneWorld virtual conference and tradeshow begins tomorrow and will feature a range of panel discussions, conference presentations, and product demonstrations on the latest digital innovations for military training and simulation.  CAE OneWorld 2021 is free to all attendees who register (https://www.caeoneworld2021.com/) and will remain online for one month.

“We are pleased to continue supporting Boeing on the development of training systems for the international customers acquiring the next-generation P-8 maritime patrol aircraft,” said Daniel Gelston, Group President, Defence & Security, CAE.  “We are a strategic partner to the New Zealand Defence Force due to the critical training services we provide across a range of platforms such as the T-6C, SH-2G, and NH90.  We look forward to the P-8 being added to the list of training systems that CAE has played a role in delivering to support the safety, training and readiness of Royal New Zealand Air Force aircrew.”

The P-8A OFT for the RNZAF will be similar to the P-8A OFTs that CAE and Boeing have already developed for the U.S. Navy, Royal Australian Air Force, Indian Navy, and Royal Air Force.  CAE designs and manufactures the P-8 OFT hardware to Level D standards, the highest qualification for flight simulators. CAE also provides the 737-800 OFT software baseline and simulation-based software lab environment that is used for the P-8 OFT development and integration tasks. CAE then delivers the simulators to Boeing, who designs, installs and integrates software specific to the P-8 aircraft.

CAE awarded subcontract from Lockheed Martin to build C-130J simulators for binational French/German C-130J squadron

Under subcontract to Lockheed Martin, CAE will design and manufacture a C-130J full-mission simulator for the binational French and German C-130J training facility.

CAE has been awarded a subcontract from Lockheed Martin to support the design, development and manufacture of a suite of C-130J training devices for the binational French and German C-130J training facility to be located at Evreux-Fauville Air Base in Normandy, France. 

Under terms of the subcontract, CAE will manufacture a C-130J full-mission simulator capable of reconfiguring between the C-130J-30 airlifter and KC-130J tanker aircraft.  CAE will also provide a C-130J fuselage trainer to be used for training loadmasters.  The training devices will be delivered in 2023, ahead of the planned opening of the new training facility where French and German aircrews and maintainers will begin training in 2024.

As the prime contractor, Lockheed Martin has overall responsibility for delivery of the training devices, the learning management system, courseware and options for five years of training services. 

“This award continues the longstanding relationship between Lockheed Martin and CAE on the design and development of training systems for all variants of the C-130J Super Hercules,” said Dan Gelston, Group President, Defence & Security, CAE.  “CAE is honored to support Lockheed Martin in welcoming both France and Germany to the long list of global operators who train their aircrew on CAE-built C-130J simulators and training devices.”

The French and German binational C-130J squadron consists of a combined 10 Super Hercules aircraft, including C-130J-30 airlifters and KC-130J tankers. France and Germany operate the fleet under a unique partnership where the countries share the aircraft, which are used for aerial refueling, air drop and cargo missions.

Lockheed Martin and CAE have designed and developed a range of C-130J training systems for global militaries, including all branches of the United States Air Force, the U.S. Marine Corps, Royal Air Force, Italian Air Force, Indian Air Force, Royal Australian Air Force, Kuwait Air Force and Royal Canadian Air Force. In addition, CAE built the C-130J/LM-100J full-mission simulator used at Lockheed Martin’s own Hercules Training Center (HTC) located in Marietta, Georgia.

CAE expands into crew management and optimization software with Merlot acquisition

  • Accelerates expansion into software-enabled civil aviation services
  • Strengthens CAE’s digital flight operations portfolio
  • Expands addressable market in airline crew operations and optimization software
  • Represents CAE’s third announced acquisition since November

Montreal, Quebec, Canada, December 22, 2020 (NYSE: CAE; TSX: CAE)

CAE announced today the acquisition of Merlot Aero Limited (Merlot), a leading civil aviation crew management and optimization software company for US$25 million, plus additional consideration of up to US$10 million in the form of an earn-out.  The acquisition marks CAE’s expansion into digital flight crew management and represents an important milestone in the Company’s goal to unify the digital flight operations ecosystem. 

The acquisition of Merlot’s industry-leading crew optimization software allows CAE to provide an end-to-end offering of digitally-enabled crew performance software and expertise that extends from training through optimized crew operations and is unrivaled in the industry.

“This acquisition further expands our reach beyond pilot training and into the rapidly growing market for digitally-enabled crew optimization services. As we demonstrated with our acquisitions of FSC, TRU Canada, and now Merlot, we are focused on deploying the capital we recently raised to strengthen our position and expand our suite of solutions for our aviation customers,” said Marc Parent, CAE President and CEO. “We are thrilled to integrate Merlot’s capabilities and expertise in crew optimization technology to serve global operators as they look for flight operations efficiencies.”Pioneering a digital flight operations ecosystem

Over the past two years, CAE has been steadily unifying the digital flight operations ecosystem with the goal of delivering a holistic suite of solutions designed to improve operations and enhance the crew experience. Our vision began in 2018 with the acquisition of Pelesys, an aviation training courseware developer and publisher, with one of the most comprehensive training and compliance systems in the industry, and was expanded with the launch of CAE RiseTM, the Company’s predictive management and training visibility system. 

In 2018, CAE announced a commitment to invest C$1 billion in digital transformation over 5 years and in 2019  launched a new Flight Services organization to facilitate the Company’s expansion into crew management to support the growth of the Company’s core pilot training market, while expanding into an attractive new adjacency.

The unprecedented disruption caused by COVID has only accelerated customer demand for these services and the acquisition of Merlot marks another milestone in CAE’s journey to pioneer the development of a digital flight operations ecosystem.

For more information about CAE’s digital crew management solutions, visit these pages.

CAE and its employees raise $1 million for Centraide of Greater Montreal (United Way) amid COVID-19 pandemic

CAE announces today that it has raised 1 million dollars in its 2020 CAE-Centraide (United Way) fundraising campaign, amid the COVID-19 pandemic. For the second consecutive year, CAE raised 1 million dollars through employee donations, fundraising activities and a corporate donation.

“For the last nine months, the pandemic has hit the most vulnerable people especially hard, therefore I am very proud that CAE has collected 1 million dollars to support the Greater Montreal community in which thousands of our employees and their family live and work,” said Marc Parent, President and CEO of CAE. “This achievement is a testament to the exceptional commitment and generosity of CAE employees, who despite the challenges and the new reality they had to adapt to, have continued to support Centraide in the fight against poverty and social exclusion. It demonstrates the strength of our company and its dedication to supporting our community.”

CAE and Unifor Local 522 have led campaigns for Centraide for many years and have been commended by 10 Centraide Solidaires Awards, which recognize the excellence and outstanding results of their campaigns. Since 2000, CAE and its employees have donated $13.6 million to Centraide of Greater Montreal.

In addition to Centraide, CAE supports the communities in which it operates through donations and sponsorships that mainly support causes in education, civil aviation, defence, security and healthcare. The company also encourages volunteering efforts through its CAEvolunteering program, which promotes volunteering and donates to several causes supported by employees.

You can learn more about CAE’s societal goals and achievements in its FY20 Annual Activity and Corporate Social Responsibility Report.  

CAE closes $345 million public offering and concurrent $150 million private placement of common shares

CAE Inc. (“CAE” or the “Corporation”) today completed its previously announced bought deal offering (the “Offering”) of common shares (the “Common Shares”), including the full exercise of the over-allotment option (the “Over-Allotment Option”), and private placement (the “Concurrent Private Placement”) of Common Shares for aggregate gross proceeds of approximately $495 million. 

The syndicate of underwriters co-led by Scotiabank, RBC Capital Markets and TD Securities fully exercised the Over-Allotment Option to purchase an additional 1,509,000 Common Shares at the offering price of $29.85 per share. Including the exercise of the Over-Allotment Option, the Corporation sold an aggregate of 11,569,000 Common Shares for total gross proceeds of approximately $345 million. 

In addition, the Corporation issued an aggregate 5,025,126 Common Shares, at a price of $29.85 per share, through the Concurrent Private Placement with a subsidiary of Caisse de dépôt et placement du Québec for aggregate gross proceeds of approximately $150 million.

Proceeds of the Offering and the Concurrent Private Placement will be used for general corporate purposes, including to fund future potential acquisition and growth opportunities, which includes the funding of the previously completed acquisition of Flight Simulation Company B.V. and the recently announced agreement to acquire TRU Simulation + Training Canada Inc. Pending such uses, CAE intends to invest the net proceeds from the Offering and Concurrent Private Placement, hold them as cash or cash equivalents, or repay indebtedness outstanding under its credit facilities, which may be withdrawn again as opportunities arise.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the common shares, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

CAE’s Marc Parent appointed to the Order of Canada

Marc Parent, CAE’s President and CEO, appointed to the Order of Canada

CAE is proud to announce that its President and CEO, Marc Parent, has been appointed Member of the Order of Canada by the Right Honourable Julie Payette, Governor General of Canada. The Order of Canada is one of the country’s highest honours, recognizing extraordinary Canadians whose service shapes our society. Mr. Parent is receiving the Order of Canada “for his achievements that have greatly contributed to the development and growth of the aerospace industry in Canada”.

“Being appointed to the Order of Canada is the honour of a lifetime. I am truly humbled,” said Mr. Parent. “I will wear the Order’s insignia with great pride and recognition of the many people at CAE, within the aerospace industry, and at charitable organizations with which I have worked, who have energized and motivated me every step of the way.”

“Mr. Parent is a trailblazer in the Canadian aerospace industry and continues to pursue its growth worldwide. Under his leadership, CAE has become a Canadian symbol of excellence globally, with a noble purpose to make the world a safer place,” said the Honourable John Manley, Chair of CAE’s Board of Directors. “Through his business and philanthropic endeavours, Mr. Parent has made an exemplary contribution to our country, and his appointment to the Order of Canada is richly-deserved.”

Mr. Parent started his career as an engineer at Bombardier Canadair in 1984 and was recognized as one of “Canada’s Top 40 under 40” leaders in 1999. He joined CAE in 2005 and was appointed President and CEO in 2009, leading a drive for innovation that has seen the company become a world leader in training for civil aviation, defence & security, and healthcare. Over the past 40 years, he has been a passionate advocate for the Canadian aviation industry, serving on the boards of Aéro Montréal, the Canadian Association of Defense and Security Industries (CADSI) and the Aerospace Industries Association of Canada (AIAC). He has also dedicated himself to the community, leading several successful Centraide/United Way campaigns, and serving on the board of the McGill University Health Centre Foundation and as co-chair of its 2020 Dream Big Campaign. 

Recipients of the Order of Canada will be invited to accept their insignia at a ceremony to be held at a future date.

About the Order of Canada

Created in 1967, the Order of Canada is one of our country’s highest honours. Presented by the governor general, the Order honours people whose service shapes our society, whose innovations ignite our imaginations, and whose compassion unites our communities.

Close to 7,500 people from all sectors of society have been invested into the Order of Canada. Their contributions are varied, yet they have all enriched the lives of others and have taken to heart the motto of the Order: DESIDERANTES MELIOREM PATRIAM (“They desire a better country”). The striking, six-point white enamel insignia they wear symbolizes our northern heritage and our diversity, because no two snowflakes are alike.

Appointments are made by the governor general on the recommendation of the Advisory Council for the Order of Canada. For more information about the Order of Canada or to nominate someone, visit www.gg.ca/en/honours.

CAE to acquire TRU Simulation + Training Canada Inc

  • Acquisition strengthens CAE’s global civil training capabilities
  • Expands addressable market for simulator lifecycle support
  • Adds order backlog and access to new customers
  • CAE’s second acquisition announcement in the last two weeks

Montreal, Canada, November 25, 2020 – (NYSE: CAE; TSX: CAE)KEYWORDS:CIVIL AVIATIONCORPORATEPRESS RELEASE

CAE today announced that it has concluded a conditional agreement with Textron (NYSE: TXT) to acquire TRU Simulation + Training Canada Inc. (TRU Canada) for a cash consideration of approximately US$40 million, excluding post-closing adjustments. The closing of the transaction is subject to customary conditions and regulatory approvals. 

The acquisition of TRU Canada expands CAE’s global installed base of commercial flight simulators and customers, and the addressable market for simulator lifecycle support services.  TRU Canada also brings with it a backlog of simulator orders, full-flight simulator assets and provides access to a number of airline customers globally. 

TRU Canada is CAE’s second announced acquisition in the last two weeks and demonstrates the Company’s commitment to deploying the capital it is raising to strengthen the Company’s position across its markets. The acquisition is aligned with CAE’s strategic priorities and meets the strict financial parameters it has in place. It is expected to be accretive to earnings in its first full year. 

“We look forward to integrating the TRU Canada business within CAE. This acquisition demonstrates our ability to bolster our position and expand our addressable market and our global customer base during this unprecedented period of disruption. Along with the recently announced FSC acquisition, we have been able to make investments that are expected to better enable CAE to meet the global demands of our customers in support of their training and simulation needs,” said Marc Parent, CAE’s President and Chief Executive Officer.

CAE announces a $300 million public offering of common shares and a concurrent $150 million private placement with CDPQ

  • Bought deal for 10,060,000 shares at $29.85 per share with 15% Over-Allotment Option
  • Concurrent Private Placement with CDPQ at $29.85 per share for aggregate $150 million
  • Use of proceeds for general corporate purposes, including funding future potential acquisition and growth opportunities

MONTREAL, Nov. 16, 2020 (GLOBE NEWSWIRE) — (NYSE: CAE; TSX: CAE) – CAE Inc. (“CAE” or the “Corporation”) today announced that it has entered into an agreement with Scotia Capital Inc. RBC Dominion Securities Inc. and TD Securities Inc., on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Corporation will issue from treasury, and the Underwriters shall purchase on a “bought deal” basis, 10,060,000 common shares (the “Shares”) at a price of $29.85 per Share (the “Offer Price”) for gross proceeds to the Corporation of approximately $300 million (the “Offering”).

In addition, CAE has entered into an agreement under which the Corporation will complete a private placement in Canada of common shares at the Offer Price with Caisse de dépôt et placement du Québec (“CDPQ”), for aggregate gross proceeds to the Corporation of approximately $150 million (the “Private Placement”).

CAE intends to use the net proceeds of the Offering and the concurrent Private Placement for general corporate purposes, including to fund future potential acquisition and growth opportunities. This will include the funding of the acquisition of Flight Simulation Company B.V., which was also announced today by way of a separate press release. Pending such uses, CAE intends to invest the net proceeds from the Offering, hold them as cash or cash equivalents, or repay indebtedness outstanding under its credit facilities, which may be withdrawn again as opportunities arise.

The Underwriters have been granted an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part on the same terms as the Offering for a period of 30 days from the closing of the Offering, to issue additional Shares, representing up to 15% of the number of common shares sold pursuant to the Offering, for additional gross proceeds of up to $45 million.

The Shares issued pursuant to the Offering and Over-Allotment Option will be offered in all provinces of Canada by way of a prospectus supplement (the “Prospectus Supplement”) to a short form base shelf prospectus (the “Final Base Shelf Prospectus”). CAE has filed a registration statement on Form F-10, and will file the Prospectus Supplement, with the U.S. Securities and Exchange Commission (the “SEC”) in accordance with the multi-jurisdictional disclosure system established between Canada and the United States (“MJDS”).

The Corporation has filed a preliminary short form base shelf prospectus (the “Preliminary Base Shelf Prospectus”) and is filing today a concurrent preliminary prospectus supplement with Canadian Securities Commissions and with the SEC in accordance with the MJDS, in order to qualify the Shares to be issued pursuant to the Offering described above. Such Preliminary Base Shelf Prospectus, which remains subject to the review of the Canadian Securities Commissions will qualify the distribution by way of prospectus in Canada of up to $2 billion of common shares, debt securities, preferred shares, warrants, share purchase contracts, subscription receipts, units or any combination thereof, during the 25-month period during which the Final Base Shelf Prospectus will be effective.

The issuance of the common shares pursuant to the Offering and the Private Placement is subject to customary approvals of applicable securities regulatory authorities, including the Toronto Stock Exchange and the New York Stock Exchange. Closing of the Offering and the Private Placement are expected to occur concurrently on or about November 30, 2020 (the “Closing Date”). Closing of the Offering is conditional upon the closing of the Private Placement and closing of the Private Placement is conditional on the closing of the Offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the common shares, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Prospective investors should read the Final Base Shelf Prospectus, Prospectus Supplement and the documents incorporated by reference therein before investing in the common shares. These documents may be accessed for free by visiting SEDAR at www.sedar.com.

CAE has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus supplement relating to this offering, the prospectus in that registration statement and other documents CAE has filed with the SEC for more complete information about CAE and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, you may request the prospectus supplement and prospectus in Canada from Scotia Capital Inc., Attention: Equity Capital Markets, Scotia Plaza, 62nd Floor, 40 King Street West, Toronto, Ontario M5H 3Y2, or by telephone at 1-416-863-7704 or by email at equityprospectus@scotiabank.com and in the United States from Scotia Capital (USA) Inc., Attention: Equity Capital Markets, 250 Vesey Street, 24th Floor, New York, New York, 10281, or by telephone at 1-212-225-6853 or by email at equityprospectus@scotiabank.com; from RBC Dominion Securities Inc., Attention: Distribution Centre, 180 Wellington Street West, 8th Floor, Toronto, Ontario M5J 0C2, or by telephone at 1-416-842-5349, or by email at Distribution.RBCDS@rbccm.com and in the United States from RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, NY 10281, or by telephone at 1-877-822-4089, or by email at equityprospectus@rbccm.com; or from TD Securities Inc., Attention: Symcor, 1625 Tech Avenue, Mississauga, Ontario L4W 5P5, or by telephone at 289-360-2009 or by email at sdcconfirms@td.com and in the United States from TD Securities (USA) LLC, 31 W 52nd Street, New York, NY 10019 or by telephone at 212-827-7392. The content of any referenced websites and other electronic links is not incorporated by reference herein or in any report or document filed with the SEC.

CAE acquires Flight Simulation Company

  • Expands CAE’s addressable market of customers including commercial cargo operators
  • Low integration complexity within CAE’s existing European footprint

MONTREAL, Nov. 16, 2020 (GLOBE NEWSWIRE) — (NYSE: CAE; TSX: CAE) – CAE today announced that it has acquired all the issued and outstanding shares of Flight Simulation Company B.V. (FSC) for a cash consideration of approximately €70 million (approximately C$108 million) paid to the sellers, calculated on the basis of an enterprise value of €100 million (approximately C$155 million).

The acquisition expands CAE’s ability to address the training market for customers operating in Europe, including airline and cargo operators. It provides CAE with an expanded portfolio of customers and an established recurring training business which is highly complementary to CAE’s network. FSC is based in Amsterdam and includes a modern fleet of mainly CAE-built full-flight simulators (FFSs) and training devices, comprised of nine narrow body B737 and A320 FFSs, two widebody aircraft FFSs and one regional jet. This acquisition is consistent with CAE’s internal acquisition criteria and capital allocation priorities, similar to its other recent bolt-on acquisitions, and is expected to be accretive to earnings in its first full year.

“CAE is well positioned in the current environment, with access to bolstered capital resources, to enhance its market presence with selective, value-based acquisitions within its core. The acquisition of FSC will allow CAE to better support its customers and expand its addressable market,” said Marc Parent, CAE’s President and Chief Executive Officer.

CAE releases 2020-2029 Pilot Demand Outlook

  • Forecast for 27,000 new professional pilots starting in late 2021
  • Global demand forecast for more than 260,000 new pilots over the next 10 years

MONTREAL, Nov. 9, 2020 /CNW Telbec/ – (NYSE: CAE) (TSX: CAE) – CAE released today its 2020-2029 CAE Pilot Demand Outlook. The renewed 10-year view offers fleet operators key insights on the future need for professional pilots in both commercial and business aviation, building on the markets’ key drivers, variables, and trends. This is the third edition of the CAE Pilot Demand Outlook and it is released as part of CAE’s participation in Air Transport Month 2020 and the Global Airline Training and Simulation Virtual Conference (Global ATS-V). 

CAE investigated market data as airlines and operators are navigating the current downturn in passenger air travel and are pursuing recovery strategies following the outbreak of the global COVID-19 pandemic. While the demand for pilots has decreased significantly during 2020, CAE’s analysis shows that the active pilot population is expected to return to 2019 levels in 2022.  According to the 2020-2029 CAE Pilot Demand Outlook, retirement and attrition are expected to continue to be a challenge for the civil aviation industry as air travel recovers progressively.  This is expected to drive an acute demand for pilots, resulting in an estimated short-term need for approximately 27,000 new professional pilots starting in late 2021.

The report demonstrates that despite the short-term decline in the number of active pilots due to the impact of COVID-19, the civil aviation industry is expected to require more than 260,000 new pilots over the next decade. CAE’s analysis shows that the fundamental factors influencing pilot demand prior to the COVID-19 outbreak remain unchanged. Age-based retirement and fleet growth were, and are expected to remain, the main drivers of pilot demand.

“With the 2020-2029 CAE Pilot Demand Outlook, we hope to arm the industry with the insights that will help the global aviation community understand, rethink, and learn about how to continue to build and grow the supply of highly qualified pilots as the industry emerges from the downturn,” said Nick Leontidis, CAE Group President, Civil Aviation Training Solutions. “Disruptive events are opportunities to innovate and collaborate. With airlines, operators, authorities, and aircraft manufacturers, CAE will continue to shape the future of pilot training to ensure the highest level of safety and security of air travel.” 

CAE’s outlook also includes ideas on how to leverage digital technology and analytical insights to enhance pilot training. In the new outlook, CAE is sharing how it believes the global aviation community can harness the power of artificial intelligence to meet aviation’s crewing needs of the next decade, as well as the ever-evolving safety standards.

The 2020-2029 CAE Pilot Demand Outlook is available at https://www.cae.com/cae-pilot-demand-outlook-2020.