Stock Alert: CAE Adds 13% On L3Harris Technologies Acquisition

(RTTNews) - Shares of CAE Inc. (CAE) are climbing more than 13% Monday morning on the news of it acquiring L3Harris Technologies' military training business for $1.05 billion.

After closing, the acquisition is expected to be low-teens percentage EPS accretive to CAE in the first year,including expected cost synergies.

"The proposed acquisition represents a significant value creation opportunity for all CAE stakeholders. It accelerates our growth strategy in Defence and Security and is highly complementary to our core military training business, broadening our position in the United States," said Marc Parent, CAE's President and Chief Executive Officer.

The deal is expected to close in the second half of 2021.

CAE touched a new high of $30.11 this morning, before declining to trade at $29.96 currently.