UAE-based Dubai Aerospace Enterprise (DAE) has signed a definitive agreement with Terra Firma Capital Partners and Canadian Pension Plan Investment Board (CPPIB) to purchase Irish aircraft lessor AWAS for an undisclosed sum.

With 87 customers in more than 45 countries, AWAS has owned aircraft assets worth of $7.5bn until last November.

The company also has a mixed portfolio of 214 owned aircraft with an average age of 5.8 years.

AWAS also has a pipeline of 23 new aircraft on order, with delivery expected before the end of next year.

"This acquisition will more than double the current size of our business."

Once completed, the newly signed deal will see the formation of a company that will have an owned, managed and committed aircraft fleet of 394 aircraft with a total value of more than $14bn.

The combined entity will serve over 110 airline customers in more than 55 countries from offices in the UAE, Ireland, Singapore and the US.

DAE managing director Khalifa AlDaboos said: “This acquisition of AWAS is strategically compelling and propels DAE into a top ten aircraft leasing platform.

“Our leasing business has been growing at a rapid clip and this acquisition will more than double the current size of our business, providing the necessary scale for DAE to best serve its customers.”

DAE will use internal resources and committed debt financing plans to fund the proposed deal.

Subject to necessary regulatory approvals, the acquisition is scheduled to be completed by the third quarter of this year.