On October 24, 2023, CAE announced the sale of its CAE Healthcare division to Madison Industries for C$311 Million (US $227.2 Million), with the transaction expected to close at the end of fiscal 2024. As of May 15th, 2024 the CAE Healthcare brand name has switched to Elevate Healthcare. As one of the leading healthcare simulation manufacturers in the global industry, this is huge news for healthcare simulation champions around the world. Marc Parent, President and CEO of CAE shared that “we believe Madison Industries is well positioned to support the future growth of the Healthcare business, which will continue to focus on evolving simulation to drive patient safety and quality outcomes”. HealthySimulation.com will share key updates from today’s important news here below:
Special Email Announcement from CAE Healthcare President Jeff Evans Maintains CAE Healthcare Commitment to Customers
Received by email notification, HealthySimulation.com has learned from an email written by CAE Healthcare President Jeff Evans that the “transaction is subject to customary approvals, and, as such, it could be several months before CAE finalizes the process. In the meantime, it is business as usual. The CAE Healthcare team and commitment to our customers remains the same, and everyone will work with the same focus and dedication as they always have done”. The email continues that “valued customers” should be “rest assured that every measure will be taken to make this transition as seamless as possible. Your CAE Healthcare team will keep you posted of any change that could affect you and will continue to do so over the next few weeks and months”.
Official Announcement from CAE News & Events
CAE Inc. (CAE or the Company) today announced that it has reached a definitive agreement to sell CAE’s Healthcare business to Chicago-based Madison Industries for an enterprise value of C$311 million, subject to customary adjustments.
“We are proud of the significant contribution to patient safety that CAE Healthcare has made,” said Marc Parent, President and CEO of CAE. “The business is growing under a strong leadership team and has reached a point where the opportunity exists to take it to the next level. We believe Madison Industries is well positioned to support the future growth of the Healthcare business, which will continue to focus on evolving simulation to drive patient safety and quality outcomes.”
“This decision to streamline our portfolio better positions CAE to efficiently allocate capital and resources to secure the many attractive growth opportunities on the horizon in our much larger, core simulation and training markets,” he continued.
“Madison Industries is on a mission to make the world safer, healthier and more productive,” said Larry Gies, Madison Industries’ founder and Chief Executive Officer. “Our platform is designed to empower companies whose products make our lives better and build these companies into the market leaders of tomorrow.”
“At Madison, we are excited to expand upon the heritage of innovation that CAE Healthcare has built,” he continued. “With a talented workforce in the United States, Europe, and world-leading R&D capabilities in Quebec, we will look to rapidly accelerate and progress simulation and quality outcomes with the most complete set of clinical training tools available.”
Closing of the transaction, which is subject to closing conditions, including customary regulatory approvals, is expected before the end of fiscal year 2024. Sale proceeds will be principally used to accelerate deleveraging, as well as to support CAE’s continued focus on technology advancement, market leadership and cost optimization within its core training and simulation markets. CAE has engaged National Bank Financial Inc. as its exclusive financial advisor for this transaction. Read more here.
Madison Industries Agrees to Acquire CAE Healthcare Official Press Release
October 24, 2023 – CHICAGO – Madison Industries, one of the world’s largest privately held companies, announced today an agreement to acquire CAE Healthcare (Elevate Healthcare), a technology company that makes the world safer through cutting-edge medical simulation and training solutions.
“More than 2.6 million patients die every year from an adverse event while receiving hospital care.” said Larry Gies, Madison’s Founder and CEO. “CAE Healthcare’s simulation and training solutions have proven to lower that number to improve patient safety. It is a perfect fit for Madison’s mission to make the world safer, healthier and more productive.”
CAE now Elevate Healthcare equips people in critical roles with the expertise and solutions to create a safer world. As a technology company, it digitalizes the physical world, deploying software-based simulation training and critical operations support solutions. CAE Healthcare empowers healthcare practitioners to perform at their best every day and when the stakes are the highest.
“We are excited to welcome the hundreds of global team members at CAE Healthcare to the Madison family,” said Kris Howard, Madison Safety and Flow President and CEO. “Madison has many similarities to CAE Healthcare, where we are inspired by our collective mission and driven to build cultures with a fanatical focus on our customers, front line team, and innovation. The acquisition of the CAE Healthcare business will strengthen our portfolio as we leverage and continue to benefit from world-leading R&D talent in Quebec.”
“The global CAE Healthcare (Elevate Healthcare) team could not be more excited to begin its new journey to take our business to the next level with the support of Madison Industries” said Jeff Evans, President of CAE Healthcare. “This dedicated focus will enable us to align with other portfolios and seize more opportunities related to the healthcare industry, as we continue to progress simulation and quality outcomes with the most complete set of clinical training tools available.” Read more here.
About CAE
CAE (Elevate Healthcare) equips people in critical roles with the expertise and solutions to create a safer world. As a technology company, they digitalize the physical world, deploying software-based simulation training and critical operations support solutions. Above all else, they empower pilots, cabin crew, airlines, defence and security forces and healthcare practitioners to perform at their best every day and when the stakes are the highest. Around the globe, they are everywhere customers need us to be with more than 13,000 employees in approximately 250 sites and training locations in over 40 countries. CAE represents more than 75 years of industry firsts—the highest-fidelity flight, mission and medical simulators and training programs powered by digital technologies. They embed sustainability in everything they do. Today and tomorrow, they’ll make sure their customers are ready for the moments that matter.
About Madison Industries
Madison Industries is one of the largest and most successful privately held companies in the world. Madison builds entrepreneurially driven, branded market leaders that are committed to making the world safer, healthier and more productive by creating innovative solutions that deliver outstanding customer value. The team at Madison is committed to building something truly remarkable that long outlasts them while coaching others to reach their highest potential.
