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Boeing announced Tuesday its decision to sell significant portions of its Digital Aviation Solutions business, including the navigation unit Jeppesen, to private equity firm Thoma Bravo in an all-cash transaction valued at $10.55 billion.
The aerospace giant will retain core digital capabilities that provide fleet maintenance, diagnostics, and repair services to commercial and defense customers. These retained services will continue delivering predictive and prognostic maintenance insights by leveraging aircraft and fleet-specific data.
"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's president and chief executive officer.
The sale represents a substantial return on Boeing's initial $1.5 billion investment when it acquired Jeppesen in 2000. Industry insiders note the significant value appreciation over the 25-year ownership period.
Thoma Bravo emerged victorious in a competitive auction, outbidding rival private equity firms including TPG, Advent, and Veritas. The transaction ranks among the largest recent carve-out deals in the aerospace sector, surpassing Ball Corp's $5.6 billion sale of aerospace assets to Britain's BAE Systems in 2023.
"With a heritage dating back to the 1930s, Jeppesen has been at the forefront of technological innovation for nearly a century," said Holden Spaht, Managing Partner at Thoma Bravo. "We are excited to build on this track record and power its next phase of growth."
The divestiture aligns with CEO Kelly Ortberg's broader strategy to reduce Boeing's debt by selling non-core assets. Boeing's shares responded positively to the announcement, rising approximately 1.5% following the news.
Approximately 3,900 employees work within Boeing's Digital Aviation Solutions organization. Boeing and Thoma Bravo have committed to ensuring a seamless transition for affected personnel while maintaining customer service continuity.
The transaction encompasses several key Boeing digital assets beyond Jeppesen, including ForeFlight, AerData, and OzRunways. However, Boeing will maintain its essential digital expertise that supports its core aircraft manufacturing and service operations.
Subject to regulatory approvals and customary closing conditions, the deal is expected to close by the end of 2025. Citi is serving as Boeing's exclusive financial advisor, with Mayer Brown LLP providing legal counsel. Kirkland & Ellis LLP represents Thoma Bravo in the transaction.
This strategic divestiture reflects Boeing's commitment to streamlining operations while strengthening its financial position in a challenging market environment.
