L-3 Communications [LLL] yesterday said it has agreed to acquire a civil aircraft simulation and training business from France’s Thales for $132 million in cash on hand.
L-3 said the deal would provide benefits for its military business while expanding its business into the commercial market.
“With this acquisition, L-3 will strengthen its existing military training and simulation business by adding full flight simulator capability and expanding into the civil simulation market,” Michael Strianese, L-3’s chairman, president and CEO, said in a statement. “The result for L-3 will be a diversified and expanded simulation and training business and an increased global presence and growth outlook.”
The Thales simulation and training business is based in the United Kingdom and is expected to generate about $150 million in sales this year. The unit has 400 employees, an installed base of more than 540 simulators around the world, and a training center in Asia.
L-3 expects the deal to close this summer and be immediately accretive to its operating results. Once the transaction closes, the Thales unit will be integrated into the L-3 Link Simulation & Training business within L-3’s Electronic Systems Group.