CAE (NYSE: CAE) has sold its health care business unit to Madison Industries for approximately $230.2 million as part of efforts to advance its focus on the training, simulation and aviation software markets.
The Canadian aerospace and defense company said Friday the transaction initially announced in October 2023 is subject to customary adjustments and proceeds from the deal will enable it to streamline its core businesses’ operating model and portfolio.
The divestiture of CAE’s health care business will also support technology advancement, market leadership and cost structure optimization.
In a separate announcement, Jeff Evans, president of CAE Healthcare, said the integration of the global CAE Healthcare team into Madison Industries will expand the reach of the former’s simulation technology.
“This dedicated focus will allow us to progress simulation innovation and improve clinical outcomes with the most complete set of healthcare training tools available,” he added.
