Boeing to Sell Portions of Digital Aviation Solutions to Thoma Bravo for $10.55 Billion
Rhea-AI Summary
Boeing (NYSE: BA) has announced the sale of portions of its Digital Aviation Solutions business to Thoma Bravo in an all-cash transaction valued at $10.55 billion. The deal includes Jeppesen, ForeFlight, AerData, and OzRunways assets.
Boeing will retain core digital capabilities focused on fleet maintenance, diagnostics, and repair services. The transaction affects approximately 3,900 employees globally and is expected to close by the end of 2025, subject to regulatory approval.
The strategic move aligns with Boeing's focus on core businesses and aims to strengthen its balance sheet while prioritizing an investment-grade credit rating. Thoma Bravo, managing over $179 billion in assets, plans to support the acquired business's standalone growth through strategic investments and operational best practices.
Positive
- Substantial cash injection of $10.55 billion strengthening balance sheet
- Strategic focus on core business operations
- Retention of critical digital capabilities for fleet maintenance and diagnostics
- Progress toward investment-grade credit rating goal
Negative
- Divestment of significant digital aviation assets
- Loss of potential future revenue streams from digital solutions business
- Reduction in operational scope and market presence in digital aviation
News Market Reaction – BA
In the trading session that priced this news, BA gained 2.00%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Boeing will retain core digital capabilities that harness both aircraft and fleet-specific data to provide commercial and defense customers with fleet maintenance, diagnostics and repair services. This digital expertise will continue to provide predictive and prognostic maintenance insights.
"This transaction is an important component of our strategy to focus on core businesses, supplement the balance sheet and prioritize the investment grade credit rating," said Kelly Ortberg, Boeing president and chief executive officer.
"This enables all parts of the digital portfolio to focus on their strengths," said Chris Raymond, president and chief executive officer of Boeing Global Services. "Our commitment to meeting our customers' needs is unwavering as we move forward with our core products and services to support their fleets."
"We are proud to be investing in such an important technology platform in the broader aerospace and defense industry," said Holden Spaht, a Managing Partner at Thoma Bravo. "With a heritage dating back to the 1930s, Jeppesen has been at the forefront of technological innovation for nearly a century. We are excited to build on this track record and power its next phase of growth."
"The business has been through an impressive growth transformation in recent years and has strong momentum," said Scott Crabill, a Managing Partner at Thoma Bravo. "Thoma Bravo has a long track record of backing leading technology companies in partnership with existing management. We look forward to supporting the company's standalone growth objectives through strategic investments, operational best practices and a shared commitment to innovation and long-term value creation."
Approximately 3,900 employees around the globe work in Boeing's Digital Aviation Solutions organization, which includes elements of the business remaining within Boeing and those included in the sale. Boeing is working with Thoma Bravo to help ensure as seamless of a transition as possible for employees while continuing to meet the needs of customers in accordance with all obligations.
The transaction is expected to close by the end of 2025 and is subject to regulatory approval and customary closing conditions.
Citi is acting as exclusive financial advisor to Boeing, and Mayer Brown LLP is acting as outside counsel. Kirkland & Ellis LLP is acting as legal counsel to Thoma Bravo.
About Boeing
A leading global aerospace company and top
About Thoma Bravo
Thoma Bravo is one of the largest software-focused investors in the world, with over
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to the anticipated benefits of the transaction, future collaborations between the parties, and the timetable for completing the transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. Forward-looking statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to general conditions in the economy and our industry, including those due to regulatory changes, the ability of the parties to consummate the transaction, and other important factors disclosed previously and from time to time in Boeing's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Contact:
Boeing
media@boeing.com
Thoma Bravo
Megan Frank
mfrank@thomabravo.com
or
FGS Global
Abby Farr/Akash Lodh
ThomaBravo-US@fgsglobal.com
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SOURCE Boeing