{"id":35431,"date":"2021-02-08T13:29:14","date_gmt":"2021-02-08T13:29:14","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2021\/02\/08\/for-cae-the-future-means-expansion-in-cyber-space-and-more-defense-acquisitions\/"},"modified":"2026-08-08T00:39:12","modified_gmt":"2026-08-08T00:39:12","slug":"for-cae-the-future-means-expansion-in-cyber-space-and-more-defense-acquisitions","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/space\/2021\/02\/08\/for-cae-the-future-means-expansion-in-cyber-space-and-more-defense-acquisitions\/","title":{"rendered":"For CAE the future means expansion in cyber, space and more defense acquisitions"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 With defense budgets around the globe expected to fall, simulation and training firm CAE is moving to diversify its defense and security portfolio, with an emphasis on space and cyber capabilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dan Gelston, who took over CAE\u2019s <a href=\"https:\/\/www.defensenews.com\/2020\/06\/16\/cae-defence-chief-todd-probert-will-exit-interim-replacement-named\/\">defense and security business<\/a> unit in August 2020, told Defense News that his team is also looking to partner with defense primes during the early stages of new competitions, a shift which could require CAE investing in research and engineering efforts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the last two decades, CAE was \u201cvery focused\u201d on <a href=\"https:\/\/www.defensenews.com\/training-sim\/2018\/05\/22\/german-navy-leans-heavy-on-simulation-pilot-training\/\">traditional platforms<\/a>, particularly planes and <a href=\"https:\/\/www.defensenews.com\/digital-show-dailies\/paris-air-show\/2015\/06\/16\/cae-to-expand-italian-uav-fleet-training\/\">unmanned aerial vehicles<\/a>, Gelston said. Now, he expects the future of the company to involve \u201ca real focus on space and cyber, not only for that customer, but also for CAE. And those are areas that we need to augment our capabilities to make sure that we\u2019re providing the best product, the best service to help our customers.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The full interview will air as part of CAE\u2019s <a href=\"https:\/\/www.caeoneworld2021.com\/\" target=_blank>OneWorld event<\/a> Feb. 9.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/coronavirus\/2020\/03\/23\/worse-than-911-defense-firms-cut-overhead-to-the-bone\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/cae-fixed-wing-flight-school-dothan.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Worse than 9\/11: Defense firms with exposure to commercial market losses cut overhead to the bone<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Defense companies with substantial exposure to commercial markets are taking dramatic measures to limit overhead and preserve cash amid the global coronavirus pandemic.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">CAE reported just over $1 billion in defense revenues in 2019, which made it the highest-ranked Canadian company on the annual <a href=\"https:\/\/people.defensenews.com\/top-100\/\">Defense News Top 100 list<\/a>. Currently, Gelston\u2019s unit makes up about 40 percent of the company\u2019s overall business, but he sees a chance to hit a \u201cmuch larger\u201d market going forward.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gelston\u2019s plan includes increasing the \u201csecurity\u201d part of the company\u2019s \u201cdefense and security\u201d portfolio by aggressively pursuing contracts for government agencies such as the Department of Homeland Security and Transportation Security Administration. This would competing for what he describes as a \u201cmulti-hundred-million dollar opportunity with TSA here in the next few months\u201d for training security forces for airports.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWith space assets ability to target, with cyber assets ability to attack anywhere and everywhere, it\u2019s not just the Pentagon, it\u2019s critical infrastructure, it\u2019s a lot of what we traditionally have separated into DHS. So that security element is crucial,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe could really bring a lot of our research and development, our capabilities in machine learning and AI and virtual reality and augmented learning management systems\u201d to DHS, which \u201cyou could categorize a little more of a traditional time phased approach to training.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the company seeks to expand into the non-defense security realm, Gelston said the company is keeping an eye out for <a href=\"https:\/\/www.defensenews.com\/industry\/2015\/01\/31\/cae-acquires-expertise-with-bombardier-buy\/\">potential merger and acquisition<\/a> options, saying \u201cI certainly would like to think in the next 18 to 24 months a property would come along, that\u2019s particularly attractive to me.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2020 was a rocky year for CAE, which was hit particularly hard given its ties to the commercial aviation space. But the company worked<a href=\"https:\/\/www.defensenews.com\/2020\/05\/22\/cae-quarterly-income-takes-beating-from-covid-19\/\"> quickly to shave<\/a> costs, and toward the end of the year issued a public offering, with the goal of raising roughly $2 billion Canadian ($1.56 bn American). The plan, as Gelston said, was to have enough \u201cdry powder to make sure that we\u2019re coming out leaning forward out of the COVID crisis. We don\u2019t want to be hunkering down just trying to survive. We want to take advantage of this.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While not discussing specifics, Gelston emphasized that \u201cI\u2019d love to get a little more robust training capability in the cyber realm\u2026 that\u2019s an area that that I can certainly see augmenting with potential acquisition here in the next 18 to 24 months if the right property comes along, I think we would be positioned to potentially pursue that.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1599\" height=\"900\" src=\"\/wp-content\/uploads\/2026\/08\/CAE_Dan_Gelston_CAE_KC-135_simulator_in_background.jpg.jpg\" alt=\"\" class=\"wp-image-116641\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/CAE_Dan_Gelston_CAE_KC-135_simulator_in_background.jpg.jpg 1599w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/CAE_Dan_Gelston_CAE_KC-135_simulator_in_background.jpg.jpg?resize=300,169 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/CAE_Dan_Gelston_CAE_KC-135_simulator_in_background.jpg.jpg?resize=768,432 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/CAE_Dan_Gelston_CAE_KC-135_simulator_in_background.jpg.jpg?resize=1024,576 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/CAE_Dan_Gelston_CAE_KC-135_simulator_in_background.jpg.jpg?resize=1536,865 1536w\" sizes=\"auto, (max-width: 1599px) 100vw, 1599px\" \/><figcaption class=\"wp-element-caption\">Dan Gelston, Group President of CAE&#8217;s Defence &#038; Security Group, poses in front of a company simulator. (CAE)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Teaming with defense manufacturers<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That focus on new areas doesn\u2019t mean the company is turning away from <a href=\"https:\/\/www.defensenews.com\/it-networks\/2020\/07\/01\/the-air-force-awarded-another-batch-of-contracts-to-build-its-new-battle-management-system\/?utm_source=clavis\">traditional defense projects<\/a>, but it does come with a greater focus on teaming up with prime contractors early in the process to offer the DoD and <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2020\/12\/03\/italian-air-force-to-double-pilot-training-intake-with-move-to-mediterranean-island\/\">other customers<\/a> a package solution from the start, as opposed to bidding on training and simulation contracts after a design has been selected.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He pointed to the <a href=\"https:\/\/www.defensenews.com\/breaking-news\/2020\/09\/15\/the-us-air-force-has-built-and-flown-a-mysterious-full-scale-prototype-of-its-future-fighter-jet\/\">surprise rapid test-flight<\/a> of the Next Generation Air Dominance (NGAD) demonstrator from last September as an example of how defense acquisition is speeding up.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOur defense acquisition officials are really looking for skin in the game from industry\u201d early on, he said. \u201cWe don\u2019t have the time for the classic cost-plus development work, years and years and multiple phases\u201d of a project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNo company, even the big OEMs, have unlimited research and development budgets. No company, even Lockheed Martin, has unlimited engineering assets,\u201d he continued. \u201cSo if I can partner with these OEMs on these major next generation platforms now and start co developing as they develop the platform, I\u2019m codeveloping the training in the simulation experience, and sharing some of that burden, adding skin into the game for research and development engineering \u2014 It\u2019s not just money, it\u2019s also time, and time, arguably right now is our is our biggest enemy \u2014 I can really help those OEMs and give them a true discriminator in their offering.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAnd certainly at the end, that international or us customer is going to be much better off as they\u2019ve got a fully baked, fully integrated training and simulation solution with that new platform.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to looking into NGAD, Gelston said the company plans to pursue nearer-term contracts related to the F-35 joint strike fighter, MQ-9B drone, and the Army\u2019s <a href=\"https:\/\/www.defensenews.com\/smr\/defense-news-conference\/2020\/09\/10\/international-militaries-are-keeping-an-eye-on-the-us-armys-future-vertical-lift-program\/\">Future Vertical Lift<\/a> competition, while also continuing ongoing efforts like its C-130H business, which <a href=\"https:\/\/www.defensenews.com\/training-sim\/2018\/09\/26\/a-c-130h-training-subcontractor-has-replaced-lockheed-martin-as-prime-for-air-force-contract\/\">was awarded<\/a> in 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dan Gelston, CAE&#8217;s defense and security group president, expects the company to expand its offerings in the next 18-24 months.<\/p>\n","protected":false},"author":7,"featured_media":116639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":37,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,106,29,32,37],"tags":[],"coauthors":[3222],"class_list":["post-35431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-battlefield-tech","category-daily-brief","category-home","category-newsletters","category-space"],"acf":{"subheadline":"","legacy_arc_id":"SOSSGWHYMJCMPFR56GGLBHUKFE","arc_canonical_url":"\/training-sim\/2021\/02\/08\/for-cae-the-future-means-expansion-in-cyber-space-and-more-defense-acquisitions\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>For CAE the future means expansion in cyber, space and more defense acquisitions - C4ISRNet<\/title>\n<meta name=\"description\" content=\"Dan Gelston, CAE&#039;s defense and security group president, expects the company to expand its offerings in the next 18-24 months.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"For CAE the future means expansion in cyber, space and more defense acquisitions\" \/>\n<meta property=\"og:description\" content=\"Dan Gelston, CAE&#039;s defense and security group president, expects the company to expand its offerings in the next 18-24 months.\" \/>\n<meta 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