Boeing sells navigation unit Jeppesen to private equity firm Thoma Bravo for $10.55b

Boeing has agreed to sell portions of its Digital Aviation Solutions business to private equity firm Thoma Bravo for $10.55 billion, according to Yahoo Finance. The sale includes Jeppesen, a navigation unit that Boeing acquired in 2000 for $1.5 billion, as well as Fore Flight, Aer Data, and Oz Runways assets. Yahoo Finance indicates this transaction represents one of the largest carve-out deals in recent years, significantly exceeding Boeing's initial price target of $6 billion when the auction was launched last year. The deal will help Boeing strengthen its financial position while allowing the aerospace giant to concentrate on its primary manufacturing and service operations. As Yahoo Finance notes, will retain core digital capabilities that utilize aircraft and fleet-specific data to provide commercial and defense customers with fleet maintenance, diagnostics, and repair services.

Reuters reports that the sale is part of CEO Kelly Ortberg's broader plan to reduce Boeing's debt by selling non-core assets, a strategy that has already boosted investor confidence with the company's shares closing up about 2% following the announcement. The Jeppesen unit attracted strong interest from multiple private equity firms and at least one aerospace supplier during the bidding process, according to Reuters' industry sources who requested anonymity due to the confidential nature of the negotiations. The final valuation represents approximately 16 times Jeppesen's projected 2025 earnings before interest, taxes, depreciation, and amortization, Reuters revealed based on information from a person familiar with the matter.

The Boeing Company's official announcement emphasizes that this transaction will help "strengthen Boeing's capital structure" while allowing the company to "focus on core business," as stated in their press release detailing the agreement. Approximately 3,900 employees around the globe work in Boeing's Digital Aviation Solutions organization, with Boeing working closely with Thoma Bravo to ensure a smooth transition for staff while maintaining customer service commitments, according to the company's statement. 

Chris Raymond, president and chief executive officer of Boeing Global Services, explained in the company's announcement that this strategic divestiture "enables all parts of the digital portfolio to focus on their strengths" while maintaining Boeing's commitment to meet customer needs.

The Boeing press release mentions that Citi is serving as exclusive financial advisor to Boeing with Mayer Brown LLP acting as outside counsel, while Kirkland & Ellis LLP is advising Thoma Bravo. The transaction, which requires regulatory approval and customary closing conditions, is expected to close by the end of 2025, as Boeing's official statement indicates, marking a significant milestone in the company's ongoing efforts to streamline operations and improve its financial position.