CAE (CAE.TO, CAE) is pursuing strategic alternatives for Flightscape, its aviation software business, as part of its ongoing portfolio optimization and "disciplined approach to capital allocation to drive long-term shareholder value", the company said on Monday.
The transaction intends to position Flightscape for its next phase of growth while enabling CAE to "sharpen its focus" on its core simulation and training capabilities and long-term value creation, the company said.
The company will "actively assess" a full range of options, including strategic partnerships, minority or majority investment, a sale, or other alternatives that are "determined to be in the best interests" of CAE and its stakeholders, stated the company.
"Earlier this year, we completed a comprehensive review of our portfolio to ensure our capital, leadership attention and strategic focus are aligned with where CAE can create the most value," said Matthew Bromberg, President and Chief Executive Officer of CAE. "That review reinforced our conviction in Flightscape as a strong, differentiated business that may be better positioned for its next chapter through alternative ownership or partnership structures. This is a deliberate, disciplined step focused on long term value creation-for shareholders, customers, and employees."
The company's shares were last seen down $0.69 at $36.20 on the Toronto Stock Exchange.
Price: $36.13, Change: $-0.76, Percent Change: -2.06%