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MONTREAL - Bell Canada (TSX:BCE) and its Atlantic regional unit have struck deals to sell non-core businesses as the telecom operator streamlines operations and prepares to become a private company at the end of the year.

In separate deals Tuesday, GFI Solutions Group Inc. bought Bell Business Solutions Inc., a business IT services subsidiary of Bell Canada, for an undisclosed price.

Later Tuesday, pilot trainer CAE Inc. (TSX:CAE) announced a deal to buy the defence, security and aerospace unit of Bell Aliant Regional Communications Income Fund (TSX:BA.UN), Atlantic Canada's dominant telecom operator and a company in the BCE group.

The pricetag of that deal was C$26.1 million.

The sales come after Bell Canada announced the layoff last week of about 2,500 managers, part of a streamlining effort by new CEO George Cope to boost the company's efficiency and financial performance.

Bell parent BCE is being privatized under a $52 billion cash and debt deal led by the Ontario Teachers Pension Plan board, a transaction slated to close by mid-December.

Over the last year, Bell Aliant carried out a strategic review of its DSA (defence, security and aerospace) business and decided it can grow only under the ownership of a company with access to large-scale, multiyear and international projects.

"I am pleased that CAE, a Canadian-based company and world leader in the defence and civil aviation industries, will be leading our DSA business through the next phase of its growth," said Stephen Wetmore, the outgoing president and CEO of Bell Aliant.

Meanwhile, the Quebec-based division of French information technology company GFI Informatique Group, said the acquired company now operates under the name GFI Business Solutions Inc.

It employs more than 350 IT workers with annual revenues of about $40 million.

The deal will extend GFI services to include all companies in the public and private sectors across Canada for applications intended for the municipal sector, the health industry, and the manufacturing, distribution, and printing industries.

At CAE, the company said the purchase price for the xwave defence business is C$15.1 million, with an additional C$11 million to be paid under certain conditions - a total purchase price of C$26.1 million.

The acquired business supplies software and systems for simulation, training, defence and information management for the aerospace and defence industries. The division employs about 200 people in Ottawa, Halifax and Esquimalt, B.C.

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

Parent noted that xwave DSA is already a partner of CAE on several training programs and added that the acquisition "will enhance CAE's ability to serve Canada as well as the global defence and homeland security markets."

The transaction is subject to customary closing conditions and is expected to close by the end of the year.

Bell Aliant is one of North America's largest regional communications providers, with 10,000 employees and operations in the Atlantic Canada and elsewhere. Bell Aliant's xwave unit employs 1,500 people providing a range of information technology services.

CAE employs 7,000 people around the world and has annual revenues of C$1.4 billion. The company makes flight simulators and provides training to civilian and military pilots as well as others in 20 countries.

In trading on the TSX, BCE shares rose 19 cents to close at $39.16.

Bell Aliant units rose 35 cents to close at $26.90 while CAE stock dropped 37 cents to $10.68.