Thales' Civil Aircraft Simulation and Training Business sold to L-3
NEW YORK, N.Y., 12 April 2012. L-3 Communications (NYSE: LLL) announced that it has entered into an agreement to acquire the assets of Thales Training & Simulation Ltd's civil aircraft simulation and training business. The purchase price is approximately $132 million and will be funded with cash on hand.
Headquartered in Crawley, United Kingdom, the business employs approximately 400 people. It is a manufacturer of commercial flight simulation equipment, with an installed base of more than 540 simulators. The business also operates a training center in Asia. Its civil aircraft simulators are compliant with U.S. Federal Aviation Administration, European Aviation Safety Agency and International Civil Aviation Organization regulations.
The acquisition is anticipated to be completed in the summer of 2012, subject to customary closing conditions and regulatory approvals, and will be structured as an asset purchase for income tax purposes. The acquisition is expected to be immediately accretive to L-3's results of operations.
L-3 officials hope to strengthen their existing military training and simulation by adding full flight simulation capabilities and entering the civil market.
Pending the completion of this transaction, Thales Training & Simulation will be integrated into the L-3 Link Simulation & Training organization, which is part of L-3's Electronic Systems Group.
