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CAE Inc. will sell Flightscape, its airline operations software business, to aviation technology company SITA for an enterprise value of $700 million.
Why it matters
The deal pulls Canada’s largest simulation and training company out of airline software. It frees capital and management attention for the civil aviation and defence training work where CAE competes for major military programs.
Driving the news
CAE announced Monday that it has signed a definitive agreement with SITA. The price is subject to customary adjustments.
The companies expect the deal to close in the first half of 2027, pending regulatory approvals and other closing conditions.
Flightscape will keep operating as usual until then. CAE says customers will see no change in service, support or product development.
The details
Flightscape sells operations software to airlines and airports. When CAE put the business up for review in May, it said Flightscape is a cloud-based software-as-a-service platform for planning, operations control and decision support, with a staff of more than 600 across the Americas, Europe and Asia.
CAE plans to put the proceeds toward its core simulation and training businesses and toward returning capital to shareholders, while keeping financial flexibility.
BMO Capital Markets and Citigroup Global Markets advised CAE on the financial side. Norton Rose Fulbright acted as legal adviser.
What they’re saying
Matthew Bromberg, president and CEO of CAE, framed the sale as part of a broader restructuring. “This transaction is fully consistent with our transformation plan and will sharpen CAE’s focus to our core Civil and Defense businesses, where we are best positioned to lead,” he said.
SITA CEO David Lavorel said the purchase will extend what his company offers airlines. “With Flightscape, we will bring together our complementary capabilities to strengthen what we offer airlines and connect their operational decisions with insight from across the aviation ecosystem,” he said. “That will help our customers anticipate disruption, recover more effectively and run more resilient operations.”
Background
Flightscape started as an Ottawa company. CAE agreed in 2007 to buy the Ottawa-based flight data analysis firm for about C$18 million.
CAE grew its airline operations software business in 2022 with the purchase of Sabre’s Airline Operations portfolio, formerly AirCentre, for US$392.5 million. That deal brought in Sabre’s product portfolio, technology, intellectual property and employees.
The bigger picture
CAE launched the strategic alternatives process on May 11, following a portfolio assessment completed earlier in the year. It weighed options ranging from partnerships and minority or majority investment to an outright sale.
What’s next
The deal now moves to regulatory review. Flightscape staff and customers remain under CAE until closing.
