CAE Inc. [NYSE: CAE] disclosed that it has decided to acquire the Military Training Business of L3Harris Technologies [NYSE: LHX]. CAE Inc has offered $1.05 billion to L3Harris for its Military Training Business. Sources disclosed that CAE will pay for the deal by a private settlement of nearly C$700 million ($550 million) from two institutional investors.
Shares of CAE Inc. [NYSE: CAE] tumbled 1.85% as it lost -0.50 during the trading session of Friday. If we look at the recent analyst rating BofA Securities has resumed buy rating on CAE shares. In the past 52-weeks of trading, this firm share has recorded a change of $9.80 from its 52-week low and $29.15 from its 52-week high.
On the other hand, L3Harris Technologies [NYSE: LHX] shares were trading up 2.72% at $181.91 at the trading session of Friday. Its share price went from a low point around $142.01 to briefly over $215.74 in past 52 weeks. LHX’s market cap has stayed high, reaching $39.29 billion at the time of writing.
After the completion of the deal, the military training division is anticipated to be headquartered in Tampa, Florida. CAE projects that the deal to be will contribute towards EPS and estimates annual cost savings of about C$35 million to C$45 million ($27.6 million to $35.4 million) in the second year after the closure. L3Harris Technologies and CAE both haven’t commented on the deal yet.