CAE Inc. to acquire Engenuity Technologies

MONTREAL, 13 Feb. 2007. CAE Inc., a simulation and modeling company in Saint-Laurent, Quebec, will acquire Engenuity Technologies Inc., a software provider for human-machine interface and modelling and simulation based in Montreal, under terms of an agreement announced Feb. 12.

MONTREAL, 13 Feb. 2007. CAE Inc., a simulation and modeling company in Saint-Laurent, Quebec, will acquire Engenuity Technologies Inc., a software provider for human-machine interface and modelling and simulation based in Montreal, under terms of an agreement announced Feb. 12.

CAE is offering to buy all of the outstanding common shares of Engenuity for 1.20 Canadian dollars per share, payable in cash.

CAE has also entered into lock-up agreements with certain shareholders which provides for an irrevocable commitment that they tender all of the 13,282,780 shares they hold in total, representing 69.8 percent of the outstanding shares of Engenuity on a fully diluted basis.

The board of directors of Engenuity has unanimously resolved to recommend that shareholders accept the offer. The proposed transaction represents an enterprise value of 23 million Canadian dollars, which converts to about $19.6 million. The transaction is expected to close in April 2007.

"The acquisition of Engenuity Technologies is another step in our growth strategy in our military business," says Marc Parent, group president of the CAE Simulation Products and Military Training & Services group.

"Over the last two years we have increased our presence in modelling and simulation through our research and development efforts under Project Phoenix and through the purchase of Greenley and Associates, TERREX, and Kesem," Parent says. "Engenuity will add new technologies, an established customer base, and effective sales channels to accelerate our growth initiatives."

Engenuity Technologies develops commercial-off-the-shelf (COTS) simulation and visualization software for the aerospace and defence markets. The company's core products include VAPS, a software product used by aircraft and automobile designers to create models and simulations of cockpit displays; STAGE, a simulation toolkit used to create and interconnect simulation environments; and AI.implant, an artificial intelligence (AI) tool used to model individual and crowd behavior for military simulations and the gaming industry.

Engenuity Technologies recently acquired AcuSoft, a modelling and simulation products and services company based in Orlando, Fla., with a strong client base in the U.S. Army and Marine Corps.

"We are very enthusiastic about joining a global leader in modelling, simulation and training," says Patrice Commune, president and chief executive officer of Engenuity Technologies. "With its 60 years of experience and leading-edge products, CAE sets the standard in terms of innovation."

CAE provides simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe.

For more information contact Engenuity Technologies online at www.engenuitytech.com, or CAE at www.cae.com.

More in Home