Canada's CAE to sell healthcare unit for C$311 mln in bid to streamline ops

Cae

24/10/2023 14:50

Oct 24 (Reuters) - Canada-based CAE  CAE.TO  said on
Tuesday it would sell its healthcare business to Chicago-based
Madison Industries for C$311 million as the tech firm strives to
streamline its operations.
    The company said it would use the sale proceeds for
technological advancement and the deal will help with cost
optimization within its core training and simulation markets.
    CAE, which also provides solutions to civil aviation, and
defense and security sectors, said the deal is expected to close
before the end of fiscal year 2024.
    "This decision to streamline our portfolio better positions
CAE to efficiently allocate capital and resources," CAE CEO Marc
Parent said. 
   In August, CAE's healthcare unit posted revenue of C$42.40
million for the quarter through June, up from C$39.60 million
from a year earlier. The unit contributes about 4% to the
company's total revenue, as per LSEG data. 
    The unit provides students and clinical professionals
integrated physical, digital and virtual education and training
solutions.
  Montreal-based CAE has a market-cap of $9.06 billion while its
total debt was $3.32 billion as of June. 
    National Bank Financial Inc is serving as the financial
adviser to CAE.
     

 (Reporting by Priyamvada C in Bengaluru
Editing by Vinay Dwivedi)
 ((Priyamvada.C@thomsonreuters.com https://twitter.com/priyamouli1812?lang=en;))