Acquisition builds upon long-standing relationship between Calian and SimFront
OTTAWA, October 7, 2021 – Calian® Group Ltd. (TSX: CGY), provider of trusted solutions across Advanced Technologies, Health, Learning and IT and Cyber Solutions segments, announces the acquisition of Canadian-based SimFront, effective immediately.
Calian and SimFront have a 15-year collaborative relationship within the Department of National Defence. During this 15-year period, the SimFront Virtual Command and Control Interface (VCCI) Tool Suite has served as the cornerstone for Simulation-to-Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) integration/interoperability and After-Action Review (AAR). The VCCI Tool Suite combined with Calian MaestroEDE™ will now enable Calian to provide end-to-end military training and simulation capabilities and pursue new opportunities with customers seeking integration and immersive training support. SimFront integration and augmented/virtual/mixed reality solutions elevate Calian capabilities in this area.
SimFront customers include Land Forces and Navy in the Canadian Department of National Defence, the UK Ministry of Defence and the Asia Pacific Region. Their simulation-to-C4ISR integration expertise and solutions help strengthen decision-making, performance and readiness of tactical commanders and staff in operational environments.
In addition to strong defence experience, SimFront is also a leader in immersive training simulations for the healthcare and oil & gas industries and has been developing simulation software since 2013. These simulations help improve employee safety and performance against identified tasks.
“We look forward to building upon the long-standing relationship we have with Calian. SimFront is committed to delivering quality solutions to our existing, joint customers and supporting the Calian expansion into the European market,” said Chad Watson, Director, SimFront.
“Having successfully collaborated with SimFront for 15 years, I am confident that this is a solid culture fit. Our customers need an end-to-end offering in the training and simulation space, and with SimFront we will continue to over-deliver on customer expectations. This acquisition aligns strongly with all four pillars of our growth strategy – continuous improvement, customer retention, customer diversification and innovation,” said Kevin Ford, Calian CEO.
The definitive agreement is valued at up to CDN$15 million. The amount paid on closing is CDN$9 million and contains earnouts of up to CDN$6 million based on the achievement of a certain level of EBITDA performance over the next 24 months.
The acquisition of SimFront is effective October 7, 2021.