US company L-3 Communications is buying the civil aircraft simulation and training business of UK-based Thales Training & Simulation (TTS). The deal will see L-3’s military simulation unit, Link, expand into the airline market.
L-3 announced the deal Wednesday, saying it will buy TTS’ civil aircraft simulation and training business assets for £83 million ($132 million) cash and integrate it into its Arlington, Texas-based Link unit.
L-3 said it expects to close the transaction this summer subject to regulatory approvals. “For the 12 months ending Dec. 31, 2012, the new civil aircraft training and simulation business is expected to generate sales of approximately $150 million. The acquisition is expected to be immediately accretive to L-3’s results of operations,” L-3 said in a release.
The TTS unit is based near Gatwick Airport south of London and has its roots in the former British company Redifon, which later became Rediffusion Simulation. From 1988 until 1994 it was owned by Hughes Aircraft, which then also owned what is now L-3 Link, and was called Hughes Rediffusion Simulation. In 1994 Thomson-CSF bought Hughes Rediffusion, changing its name to Thales Training & Simulation when the French company underwent a brand change.
TTS employs about 400 people and has an installed base of more than 540 simulators as well as a joint venture training center in Bangkok.
Link makes simulators for a wide variety of military aircraft, including the F-22, F/A-18 and F-16 jets and AH-64 Apache and UH-60 Black Hawk helicopters.
“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. The business, when combined with our existing military training and simulation business, will enable L-3 to offer a full range of total training system solutions to military and commercial customers,” said Michael Strianese, L-3 chairman, president and CEO.
Article Source : ATW Daily News
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