Flight simulation technology maker CAE is buying Bell Aliant's defence, security and aerospace division, which has employees in Ottawa.

Montreal-based CAE said it has signed an asset purchase agreement to acquire the DSA business unit, currently operated by the xwave division of Bell Aliant Regional Communications.

The division supplies real-time software and systems for simulation, training, defence and integrated life cycle information management for the aerospace and defence industries. It employs approximately 200 people in Ottawa, Halifax and Esquimalt, B.C.

CAE will pay $15.1 million, with an additional $11 million to be paid if all conditions are met, for a potential purchase price of $26.1 million.

"We are happy to expand CAE's defence capabilities and footprint across Canada, particularly in Ottawa, Atlantic Canada and British Columbia," stated Marc Parent, CAE president of the simulation products and military training and services group.

"Xwave DSA is already a valued partner of CAE on several programs. By joining CAE and our CAE Professional Services team, xwave's DSA professionals will provide us with a portfolio of complementary capabilities, including systems integration that will enhance CAE's ability to serve Canada as well as the global defence and homeland security markets."

The acquisition is part of CAE's strategy to expand the use of simulation technology throughout defence systems; just last year, the company also bought local flight safety software maker Flightscape for $18 million.

The deal will give CAE access to a suite of training products focused on rear crew trainers and mission rehearsal systems, as well as to new customers and capabilities in the electronic warefare and land command-and-control markets, and to expand its presence in the command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) space.

Xwave's DSA group is involved in programs such as Canada's Maritime Helicopter Program, and its solutions are being used by Canadian troops in Afghanistan.

The acquisition is expected to close by the end of the calendary year.