Boeing Sells Portions of Digital Aviation Solutions for $10.55 Billion: What Does This Move Mean?
Boeing has signed a definitive agreement to sell portions of its Digital Aviation Solutions business to software investment firm Thoma Bravo. The transaction, valued at $10.55 billion and conducted entirely in cash, includes assets such as Jeppesen, ForeFlight, AerData, and OzRunways.
What Boeing Is Selling and What It Retains
The agreement covers key units essential for air navigation, data management, and operational solutions within the digital aviation ecosystem. Jeppesen, for instance, has been a leader in aeronautical charting since the 1930s. ForeFlight and AerData are also widely used by airlines and operators for their ability to enhance operational efficiency and fleet maintenance.
However, Boeing is not fully divesting its digital arm. It will retain critical capabilities focused on aircraft and fleet data analysis, providing diagnostic, maintenance, and repair services for both commercial and defense clients. This continuity is vital to maintaining its competitive edge in predictive and preventive maintenance solutions.
→ Boeing Delivered 41 Commercial Aircraft in March
Goal: Strengthen the Balance Sheet and Regain Investment-Grade Rating
Kelly Ortberg, President and CEO of Boeing, explained that this move aligns with a broader strategy to focus on core businesses. Additionally, it will help strengthen the financial balance sheet and advance efforts to regain an investment-grade credit rating, which was lost in recent years due to financial challenges.
Chris Raymond, CEO of Boeing Global Services, emphasized that this decision will allow each part of the digital portfolio to focus on its strengths. He also assured that Boeing will continue to meet its commitments to customers through its core products and services.
Thoma Bravo’s Interest: Innovation and Independent Growth
From the buyer’s perspective, this transaction represents a strategic opportunity. Holden Spaht, Managing Partner at Thoma Bravo, praised Jeppesen’s legacy of technological innovation and expressed enthusiasm for driving its next phase of growth.
Scott Crabill, also a Managing Partner, highlighted the recent transformation of this business and its positive momentum. Thoma Bravo plans to support its evolution as an independent entity through strategic investments, efficient operational practices, and a shared focus on innovation and long-term value creation.
A Global Transition for Nearly 4,000 Employees
Currently, approximately 3,900 employees are part of Boeing’s Digital Aviation Solutions organization. This includes teams that will remain with Boeing as well as those transitioning to Thoma Bravo. Both parties have committed to ensuring a smooth transition for employees without compromising service quality for customers.
Expected Closing and Advisors
The transaction is expected to close by the end of 2025, subject to regulatory approvals and customary closing conditions. Boeing’s exclusive financial advisor for this deal was Citi, with legal support from Mayer Brown LLP. Thoma Bravo’s legal advisor was Kirkland & Ellis LLP.
This move marks a turning point for Boeing, as it aims to consolidate its focus on essential services while allowing its more commercial digital solutions to continue thriving under the backing of a major technology investor.
Related Topics
Wizz Air UK Delays Entry into Service of Airbus A321XLR Again
Airbus and Panasonic Avionics Join Forces to Develop Future Connected Aircraft Platform
Airbus Unveils Its New “First Class Experience” Concept for A350-1000
Air Canada to Be Launch Customer for Airbus A220 with Airspace Cabin
Plataforma Informativa de Aviación Comercial líder en América Latina.