CAE signs deal to sell health care business to Madison Industries for $311 million

The CAE logo is seen at the aerospace company’s plant, Thursday, July 21, 2022 in Montreal. CAE Inc. has signed a deal sell its health care business to U.S. company Madison Industries for $311 million. (THE CANADIAN PRESS/Ryan Remiorz)

CAE Inc. has signed a deal selling its health care business to U.S. company Madison Industries for $311 million.

CAE chief executive Marc Parent says the decision better positions the company to secure growth opportunities in its much larger core simulation and training markets.

While CAE is best known for its flight simulators, the health care business focuses on training for medical professionals, including patient simulators.

Parent says the business, which it launched in 2009, is growing under a strong leadership team and has reached a point where the opportunity exists to take it to the next level.

He says Madison Industries is well positioned to support the future growth of the business, which will continue to focus on evolving simulation to drive patient safety and quality outcomes.

The deal, subject to closing conditions, including regulatory approvals, is expected to close before the end of CAE's 2024 fiscal year.

-- This report by The Canadian Press was first published Oct. 24, 2023.