CAE to acquire Bell Aliant's xwave Defence, Security and Aerospace business
August 05 2008 - 5:20PM
Marketwired
CAE (TSX: CAE)(NYSE: CGT) and Bell Aliant Regional Communications
Income Fund ("Bell Aliant") (TSX: BA.UN) today announced that CAE
has signed an asset purchase agreement to acquire Bell Aliant's
Defence, Security and Aerospace (DSA) business unit, currently
operated by the xwave division of Bell Aliant Regional
Communications, Limited Partnership. The purchase price paid on
closing will be C$15.1 million with an additional C$11.0 million to
be paid contingent upon the occurrence of certain events for a
potential total purchase price of $26.1 million.
xwave's DSA team supplies real-time software and systems for
simulation, training, defence, and integrated lifecycle information
management for the aerospace and defence industries. The division
employs approximately 200 people in Ottawa, Ontario; Halifax, Nova
Scotia; and Esquimalt, British Columbia.
"We are happy to expand CAE's defence capabilities and footprint
across Canada, particularly in Ottawa, Atlantic Canada and British
Columbia," said Marc Parent, CAE's Group President, Simulation
Products and Military Training & Services. "xwave DSA is
already a valued partner of CAE on several programs. By joining CAE
and our CAE Professional Services team, xwave's DSA professionals
will provide us with a portfolio of complementary capabilities,
including systems integration that will enhance CAE's ability to
serve Canada as well as the global defence and homeland security
markets."
Over the past year, Bell Aliant conducted a strategic review of
its DSA business and concluded that to further grow the business,
it should be operated by an organization that supports large scale,
multi-year and international projects in this sector.
"I am pleased that CAE, a Canadian-based company and world
leader in the defence and civil aviation industries, will be
leading our DSA business through the next phase of its growth,"
said Stephen Wetmore, President and CEO of Bell Aliant. "We look
forward to working with CAE, our employees and clients through this
transition."
This acquisition is an important step in CAE's strategy to
expand the use of modelling and simulation throughout the defence
systems lifecycle. xwave's DSA unit offers a suite of training
products focused on rear crew trainers and mission rehearsal
systems that will further enhance CAE's military training and
services offerings. The acquisition will also allow CAE to add new
customers and capabilities in the electronic warfare market, the
land command and control market, and significantly enhance its
presence in the C4ISR (command, control, communications, computers,
intelligence, surveillance and reconnaissance) domain.
Some of the key programs involving xwave's DSA include a range
of air, land and sea programs in Canada, such as the Maritime
Helicopter Program, where DSA is providing lifecycle support
capabilities. In addition, the DSA team's electronic warfare
technology is currently used by Canadian troops in Afghanistan. The
xwave DSA team is also part of the Lockheed Martin team pursuing
the Canadian Navy's Halifax Class Modernization Program.
The transaction is subject to customary closing conditions and
is expected to close by the end of the calendar year.
Caution Concerning Forward-Looking Statements
This news release contains forward-looking statements relating
to the proposed sale of Bell Aliant's xwave Defence, Security and
Aerospace business unit to CAE. Such statements are made as of the
date of this release and are therefore subject to change after that
date. These statements are also subject to important known and
unknown risks, assumptions, uncertainties and other factors that
may cause actual events, results, performance or achievements to
differ materially from those expressed in the forward-looking
statements. The timing and completion of the proposed sale
transaction is subject to each of the parties fulfilling their
commitments under the transaction, as well as a number of other
terms and conditions, some of which may be outside of the control
of the parties. Therefore it cannot be guaranteed that any
forward-looking statement will materialize. Bell Aliant and CAE
assume no responsibility for the accuracy and completeness of the
forward-looking statements and, except as may be required by
applicable law, disclaim any intention and assume no obligation to
publicly revise these forward-looking statements to reflect
subsequent events or circumstances. Readers should not place undue
reliance on any forward-looking statements.
About Bell Aliant
Bell Aliant (TSX: BA.UN) is one of North America's largest
regional communications providers. Through its operating entities
it serves customers in six Canadian provinces with innovative
information, communication and technology services, including
voice, data, Internet, video and value-added business solutions.
Through its xwave offices, Bell Aliant also provides IT
professional services in Canada and the US. Bell Aliant's 10,000
employees are committed to deliver the highest quality of customer
service, choice and convenience.
About xwave
xwave, a division of Bell Aliant, is a full-service
business-solutions provider that serves clients through systems
integration, infrastructure services, and advanced technology
solutions. These areas offer clients a broad delivery capability:
xwave plans, designs, builds and operates complete information and
communications technology (ICT) solutions that meet
business-process needs and are designed to deliver a measurable
return on technology investments. With almost $300 million in
revenues and 1,500 people, xwave is one of the largest
business-solutions organizations in Canada, with locations in St.
John's, Halifax, Moncton, Saint John, Fredericton, Charlottetown,
Summerside, Montreal, Ottawa, Toronto, and New England. More
information can be found at www.xwave.com
About CAE
CAE (TSX: CAE)(NYSE: CGT) is a world leader in providing
simulation and modelling technologies and integrated training
solutions for the civil aviation industry and defence forces around
the globe. With annual revenues exceeding C$1.4 billion, CAE
employs approximately 7,000 people at more than 75 sites and
training locations in 20 countries. We have the largest installed
base of civil and military full-flight simulators and training
devices. Through our global network of 27 civil aviation and
military training centres, we train more than 75,000 crewmembers
yearly. We also offer modelling and simulation software to various
market segments and, through CAE's professional services division,
we assist customers with a wide range of simulation-based needs.
www.cae.com
Contacts: Media relations: CAE Nathalie Bourque Vice President,
Public Affairs and Global Communications +1-514-734-5788
nathalie.bourque@cae.com Bell Aliant Alyson Queen Public Affairs
902-487-5653 alyson.queen@bell.aliant.ca Investor relations: CAE
Andrew Arnovitz Vice President, Investor Relations and Strategy
+1-514-734-5760 andrew.arnovitz@cae.com Bell Aliant Zeda Redden
Investor Relations 902-487-5726 zeda.redden@bell.aliant.ca
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