Global Pilot Training Group CAE to Increase Ownership Stake in SIMCOM Aviation Training Joint Venture and Extend Exclusive Business Aviation Training Agreement with Flexjet and its Affiliates

CAE announced that it will increase its ownership stake in its existing SIMCOM Aviation Training (SIMCOM) joint venture by purchasing a majority of SIMCOM shares from Volo Sicuro for USD $230 million, subject to customary adjustments, to be financed with CAE’s existing credit facility and cash on hand. As part of the transaction, Flexjet, LLC, a related party of Volo Sicuro, will retain a minority stake in SIMCOM following the closing, expected to take place in the coming days.

Additionally, CAE and SIMCOM will each extend their respective exclusive business aviation training services agreement with Flexjet and its affiliates by 5 years. This results in a remaining exclusivity period of 15 years for both agreements.

This significant organic investment will further solidify CAE’s presence in its core business aviation training market, increase recurring revenue streams, and reinforce its commitment to delivering world-class training solutions in business aviation. Its long-term exclusive training agreement with one of the world’s leading luxury private jet companies gives CAE even greater exposure to the rapidly growing fractional jet and charter aviation market. CAE expects this investment to be accretive to earnings and free cash flow in the first full-year post transaction.

“We are delighted to increase our investment in this core area and achieve majority ownership of SIMCOM to strengthen our position in the business aviation market, as well as extend our long-standing partnership with Flexjet, one of the leading and fastest growing private jet companies,” said Alexandre Prévost, Division President, Business Aviation. “This highlights our commitment to continuing to drive innovation and provide industry-leading technology to better serve our business aviation customers.”

“CAE has been a great partner over the years, consistently providing high-quality training and delivering a superior customer experience to all of our pilots,” said Flexjet CEO Mike Silvestro. “With this agreement, Flexjet’s 1,400+ pilots will continue to have access to state-of the-art facilities and experience world-class pilot training, enabling us to further enhance our pilots’ quality of life, both on the road, and during a pilot’s recurrent training. As demand for highly experienced, highly skilled pilots continues to rise, best-in-class training is essential to maintaining Flexjet’s unmatched safety standards. We look forward to our continued relationship and collaboration with CAE and SIMCOM long into the future.”

SIMCOM currently provides pilot training across multiple business aviation aircraft platforms, leveraging CAE’s innovative suite of training equipment, including CAE 7000XR Series full-flight simulators (FFSs) and CAE 400XR Series flight training devices (FTDs). SIMCOM operates four training centres in the United States, including its most recent state-of-the-art facility in Lake Nona, Florida.

About CAE
At CAE, we equip people in critical roles with the expertise and solutions to create a safer world. As a technology company, we digitalize the physical world, deploying software-based simulation training and critical operations support solutions. Above all else, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security forces to perform at their best every day and when the stakes are the highest. Around the globe, we’re everywhere customers need us to be with approximately 13,000 employees in more than 240 sites and training locations in over 40 countries. CAE represents more than 75 years of industry firsts—the highest-fidelity flight and mission simulators as well as training programs powered by digital technologies. We embed sustainability in everything we do. Today and tomorrow, we’ll make sure our customers are ready for the moments that matter.

About SIMCOM
A privately-owned, comprehensive learning institution, SIMCOM utilizes realistic simulator-based training to provide advanced aviation training services to professional pilots, owner-operators, Part 135 operators and maintenance personnel operating in general aviation, regional, military, government and cargo operations around the world.  SIMCOM currently operates 40+ simulators and flight training devices representative of a wide range of jet, turboprop and piston powered aircraft.  The company is headquartered in Orlando, Florida.

About Flexjet
Flexjet, Inc., a global leader in private aviation, first entered the fractional jet ownership market in 1995 and is about to celebrate its 30th anniversary. Flexjet offers fractional jet ownership and leasing and is the first in the world to be recognized as achieving the Air Charter Safety Foundation’s Industry Audit Standard, is the first and only company to be honored with 25 FAA Diamond Awards for Excellence, upholds an ARG/US Platinum Safety Rating, a 4AIR Bronze Sustainable Rating and is certified at Stage 2 with IS-BAO. Red Label by Flexjet, a market differentiator, which features an ultra-modern fleet, flight crews dedicated to a single aircraft and the LXi Cabin Collection of interiors. To date there are nearly 50 different interior designs across its fleet, which includes the Embraer Phenom 300 and Praetor 500, Bombardier Challenger 350/3500, the Gulfstream G450 and G650. Flexjet’s European fleet includes the Embraer Praetor 600 and the Gulfstream G650. Flexjet’s helicopter division sells fractional, lease and on-demand charter access to its fleet of owned, operated and maintained Sikorsky S-76 helicopters which boast 55,000 hours of safe flying certified by Wyvern and ARG/US and serving locations throughout the northeastern United States, United Kingdom and Florida. Flexjet is a member of the Directional Aviation family of companies. 

Source: CAE
Photo Credit: CAE

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US Aviation Academy Expands Pilot Training Infrastructure – Acquires Flight School Assets in Atlanta

Texas – United States based US Aviation Academy (USAA), one of the largest aviation and pilot training organizations in North America which recently announced it had already enrolled more than 500 aspiring pilots to its 2024 flight training courses, has announced in a in a strategic move to expand its footprint and meet the growing demand for professional pilot training,

US Aviation Academy has acquired the assets of a well-established flight school in Atlanta, Georgia. This new location brings a wealth of opportunities for aspiring pilots in the Southeast, enabling them to access top-tier flight training and resources. With a robust reputation for high-quality training programs across the United States, US Aviation Academy’s entrance into the Atlanta market is a welcome development for local students seeking accelerated pathways to becoming commercial pilots.

The Atlanta Flight School campus
It will initially operate under Part 61 regulations, allowing for a flexible, personalized approach to training. This setup is particularly beneficial for students who want to pursue an accelerated course of study, as Part 61 regulations typically allow for a more adaptable schedule, enabling trainees to progress at their own pace. This model has long been favored by those aiming for swift completion and professional entry into the aviation industry. For students balancing work or other commitments, Part 61 training offers an ideal blend of rigor and flexibility, keeping their career goals on track.

Working toward Part 141 certification for the Atlanta Flight School
with FAA approval pending. This certification will allow the academy to offer a structured and streamlined curriculum, designed to optimize the learning experience and meet the highest regulatory standards. Part 141 programs are particularly appealing to students aiming for financial aid, veterans’ benefits, or specific airline career tracks, as this certification often aligns with streamlined training paths and financial incentives. Once approved, the Atlanta campus will be able to attract a broader range of students seeking the benefits of a Part 141 training environment.

The acquisition of the Atlanta flight school assets
Represents US Aviation Academy’s commitment to expanding access to quality aviation training in key locations across the U.S. As one of the busiest aviation hubs in the country, Atlanta offers ideal conditions for flight training, with access to diverse airspace and a vibrant aviation community. Students at the new campus will benefit from experienced instructors, well-maintained aircraft, and a training environment that reflects US Aviation Academy’s high standards of safety and professionalism.

With the addition of the Atlanta campus, US Aviation Academy continues to make strides in providing premier aviation education options for those seeking careers in aviation. The Atlanta acquisition not only strengthens the academy’s reach but also affirms its commitment to adapting to industry needs and offering flexible training solutions. As Part 141 approval nears, the future looks bright for aspiring pilots in the Southeast.

Source: US Aviation Academy

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Flight Training Management Software Announces Additional Growth Investment

FlightLogger, the leading provider of cloud-based flight school management software, has secured an additional, significant growth investment from Arcadea Group, a permanent capital investor in high-growth VSaaS companies. This marks the second growth equity investment led by Arcadea in FlightLogger, with the first completed in 2022.

With this new investment, FlightLogger is poised to accelerate its product roadmap and market coverage, including groundbreaking features like an AI-driven auto-scheduling suite and advanced analytics tools, ensuring that flight academies using the software remain at the cutting edge of technology and efficiency.

Paul Yancich, Managing Director of Arcadea, highlighted the strategic decision behind the additional investment: “FlightLogger has surpassed our expectations and has an even bigger opportunity than we had originally thought. This capital will accelerate what they’re already doing so well.

Mads Larsen, CEO of FlightLogger, added, “While competitors are driven by short-term financial targets, FlightLogger remains focused on delivering value and innovation for the long haul. Our long-term success relies on our ability to continuously add more value to flight academies. This investment allows us to accelerate our ambitious roadmap, including our soon-to-be-released AI-driven auto-scheduling suite, insights tools, and other products and enhancements.

Kenneth Jeppesen, Founder and continued equity holder of FlightLogger, added, “Our vision for the industry is bold and ambitious. We’re thrilled to be able to add additional resources in order to execute against our customer-centric approach to growth.

About FlightLogger
FlightLogger, founded in 2011, provides a comprehensive cloud-based platform designed specifically for flight schools. The software integrates scheduling, student management, maintenance tracking, and billing into one seamless system, helping flight schools of all sizes operate more efficiently. FlightLogger’s platform is used by 200 flight schools across Europe, Asia, North America, and beyond.

About Arcadea Group
Arcadea Group invests in high-quality, capital-efficient, founder-led software companies over ultra-long-term durations. With offices in Toronto, Canada, and Orlando, Florida, and investments globally, Arcadea leverages its permanent capital structure to support the long-term growth potential of industry-leading SaaS vendors.

Source: Flightlogger

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Comply365 Announces Acquisition of Training Management System Solution Provider Qualtero

Beloit, Wis. / Bristol, England / Tel Aviv, Israel September 4, 2024 Comply365, LLC (“Comply365”), a leading global provider of compliance and safety management solutions for the aviation, rail and defense industries, announced the acquisition of Qualtero Limited (“Qualtero”), a leading provider of solutions to optimize civil and military aviation training operations. The acquisition will create a leading global all-in-one compliance, safety and training platform for peak operational performance serving the aviation, defense and rail industries with over 140 customers located in over 30 countries on six continents. Terms of the transaction were not announced.

In January 2024, Insight Partners, a global software investor, and Liberty Hall Capital Partners (“Liberty Hall”), a private equity firm focused exclusively on investments in businesses serving the global aerospace and defense industry, announced a strategic growth investment in Comply365 in connection with Comply365’s merger with VistairLimited (“Vistair”). The acquisition of Qualtero represents Comply365’s first acquisition since its merger with Vistair.

Commenting on the acquisition of Qualtero, Tom Samuel, Vice Chairman, and Rob Morgan, CEO, of Comply365 said, “We are delighted to welcome the Qualtero team into the Comply365 family. Qualtero is a world-renowned provider of innovative training and qualification management solutions for civil and military aviation, with a stellar global customer base. This acquisition brings together complementary product lines and talent, further bolstering our ability to deliver a unique value proposition to our customers by connecting the dots between operational content management, safety management, training management, and data analytics.

Barak Kirmayer, CEO of Qualtero said, “The acquisition of Qualtero by Comply365 marks a significant milestone in Qualtero’s journey. We see immense synergy between the companies’ solutions and teams, and with the support of Comply365, we are poised to deliver even greater value and more innovative products to our combined customers.

Henry Frankievich, Managing Director at Insight Partners said, The acquisition of Qualtero is a natural extension of Comply365’s strategy to create a comprehensive compliance and safety platform serving the global aviation, defense and rail industries. We believe that the addition of Qualtero’s widely respected training and qualifications management capabilities will enable our customers to achieve the highest levels of operational excellence. We look forward to continuing to work with Liberty Hall to support Comply365 in their continued growth.

James Black, Partner at Liberty Hall Capital Partners added, With the acquisition of Qualtero, Comply365 extends the value proposition it offers to airlines, defense and rail organizations by expanding its capacity to power operational excellence with a leading training management offering. Along with our partners at Insight, we look forward to supporting Comply365’s continued growth, combining the strengths and expertise of both organizations to deliver even greater value to our collective customers.

Legal advice to Comply365 was provided by Gibson Dunn & Crutcher, Willkie Farr & Gallagher and Goldfarb Gross Seligman. Qualtero was advised by DLA Piper and Barnea Jaffa Lande & Co.

About Comply365

Comply365 is a leading provider of Operational Content Management, Safety Management and Training Management in the highly regulated industries of aviation, defense and rail.  Comply365 provides a powerful combination of expertise and products underpinned by unified best practices, providing airlines, rail and defense organizations with a single digital platform to elevate operational excellence, transform safety management and training, with closer integration of relevant data sets across domains.By empowering airline, rail and defense organizations with an all-in-one compliance, safety, training and data platform, Comply365 ensures their crews and assets always geared for peak operational performance, unlocking unparalleled financial and operational gains through more streamlined, robust and agile operations. Comply365 is the trusted technology partner of many of the most progressive aviation and defenseorganizations worldwide with a global customer base of over 120 airlines, defense and rail organizations.

About Qualtero

Qualtero is a premier provider of training management solutions, empowering organizations to deliver impactful training experiences that drive compliance performance and growth. Qualtero specializes in developing innovative solutions for optimizing commercial and military aviation training operations. Its flagship products include Fox, a comprehensive Training Management System, and Qualtero EQMS, the most modern Qualification Management System. These tools help aviation training organizations of all sizes streamline processes, reduce costs, and enhance throughput.Qualtero’s team of talented and experienced professionals employ proven methodologies to ensure complete customer success, continuously enhancing its solutions with the latest technology to meet their evolving needs.

About Insight Partners

Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of December 31, 2023, the firm has over $80B in regulatory assets under management. Insight Partners has invested in more than 800 companies worldwide and has seen over 55 portfolio companies achieve an IPO. Headquartered in New York City, Insight has offices in London, Tel Aviv and the Bay Area. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with tailored, hands-on software expertise along their growth journey, from their first investment to IPO.

About Liberty Hall

Liberty Hall Capital Partners is a private equity firm focused exclusively on investments in businesses serving the global aerospace and defense industry. Liberty Hall’s principals have a 25-plus year history of working together and have led the investment of over $2.5 billion in equity capital in over 25 businesses serving multiple segments of the aerospace and defense industry. Liberty Hall was founded in July 2011 as the first, and remains the only, private equity firm focused solely on investments in middle market businesses serving the aerospace and defense industry. Liberty Hall executes a proven and repeatable investment strategy designed to transform middle market businesses into larger, more capable and diverse strategic assets.

Source: Qualtero
Photo Credit: Qualtero

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