Boeing to Sell Some of Its Navigation Business in $10.55 Billion Deal – WSJ

Boeing has announced the sale of its Jeppesen navigation unit and related digital aviation assets to private equity firm Thoma Bravo for $10.6 billion in cash. This move is part of CEO Kelly Ortberg’s strategy to streamline operations and focus on core aerospace and defense businesses.

Deal Overview

The transaction includes Jeppesen, a provider of navigation products and software, along with subsidiaries ForeFlight, AerData, and OzRunways. Under Thoma Bravo’s ownership, Boeing will continue to access data necessary for maintenance, repair, and diagnostics services. ​

Strategic Implications

This divestiture aligns with Boeing’s efforts to reduce debt and concentrate on its primary manufacturing operations. The Jeppesen unit, acquired by Boeing in 2000 for $1.5 billion, has been a significant asset, offering steady cash flow and attracting interest from various private equity firms and aerospace suppliers. ​

Market Impact

The sale reflects the growing interest of private equity firms in aviation technology assets. Thoma Bravo’s acquisition of Jeppesen and its subsidiaries positions the firm to capitalize on the increasing demand for digital aviation solutions.​

Conclusion

Boeing’s sale of its digital aviation assets marks a significant shift in the company’s focus, allowing it to streamline operations and invest more heavily in its core aerospace and defense sectors. For Thoma Bravo, the acquisition represents a strategic expansion into the aviation technology market.​Reuters+8Reuters+8Bloomberg+8

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