(Montreal) Montreal technology company CAE announced Tuesday that it has entered into a definitive agreement to sell its CAE Health division to Madison Industries of Chicago, based on an enterprise value of 311 million Canadian dollars.
CAE is known for its work in the fields of civil aviation, defense and security. The contribution of the CAE Healthcare division consists of offering medical training products focused on simulation.
CAE President and CEO Marc Parent said in a statement that this decision better positions the company to effectively allocate capital and resources to take advantage of the many growth opportunities that lie ahead. ‘horizon.
The proceeds from the sale will mainly be used to accelerate debt reduction, it is specified in the press release.
Mr. Parent adds that the CAE Healthcare division has reached a point where it is possible to take it to the next level. In his view, Madison Industries is well positioned to support the future growth of the Healthcare division.
Closing of the transaction, which is subject to closing conditions, including customary regulatory approvals, is expected before the end of fiscal 2024.
Company mentioned in this report: CAE (TSX: CAE)