CAE to Sell Flightscape to SITA at an Enterprise Value of $500 Million
Key Facts
CAE announced on October 26, 2026, a definitive agreement to sell its Flightscape flight operations software business to SITA at an enterprise value of $500 million, subject to customary adjustments. The company said the deal is expected to close in the first half of 2027, after regulatory approvals are obtained and the remaining closing conditions are met. The transaction is a step in CAE's plan to refocus its operations on civil aviation and defense, according to CEO Matthew Bromberg. Bromberg described the agreement as "fully consistent with the company's transformation plan," adding that it would sharpen the company's focus on its core businesses. The announced figure is the deal's enterprise value, not final cash proceeds disclosed by the company. In the October 26 session, CAE shares closed at C$36.60, up 4.57%, with about 998.30 thousand shares traded.
CAE plans to use the sale proceeds in line with its capital allocation priorities, including investment in its core simulation and training businesses and returning capital to shareholders, while maintaining financial flexibility. The move comes as part of a broader transformation announced by the company in May 2026, targeting annual savings of between C$125 million and C$150 million by fiscal 2030. At the time, it also set a target for adjusted segment operating income of between C$950 million and C$1 billion in the same fiscal year. In its fiscal 2027 first-quarter results, CAE said its review of strategic alternatives for Flightscape was "drawing strong interest." The company also cited a plan to close between 4 and 6 civil training centers as it streamlines its network. These measures place the Flightscape sale within broader efforts to reshape the business portfolio and direct resources toward activities the company describes as core.
Flightscape software is used daily by more than 90 airlines, according to SITA, to help them plan flights, manage crews and operate their networks. The solutions include flight planning, operations control and ground activity coordination, as well as in-flight services. SITA said adding these capabilities to its broader air transport information ecosystem connects operational decisions with more extensive data. It added that this would help its customers "anticipate and recover from disruptions more effectively" and manage more resilient operations. Aviation Week reported that more than 90 airlines use Flightscape daily and that the deal comes as CAE exits non-core businesses and focuses on civil aviation and defense. For customers, CAE said Flightscape will continue to operate as usual until the deal closes, with service, support and product development continuing and employees focused on meeting their needs.
CAE's fiscal 2027 first-quarter results show revenue growth alongside a decline in adjusted segment operating income compared with the same period a year earlier. Revenue was C$1,173.4 million, versus C$1,098.6 million a year earlier, while adjusted operating income fell to C$156.6 million from C$169.3 million. Bromberg said civil aviation revenue rose 5.6% year over year despite lower profitability, while defense revenue increased 8.3%. For fiscal 2027, CAE expects low-single-digit revenue growth and an adjusted segment operating income margin of between 14.6% and 15.1%. It also set an adjusted earnings-per-share range of between C$1.21 and C$1.28. The deal remains subject to regulatory approvals and closing conditions, according to the company's announcement, and is expected to close in the first half of 2027.