Boeing has announced a significant move to divest portions of its digital aviation solutions business to Thoma Bravo, a prominent software-focused investment firm, for a hefty $10.55 billion. This strategic sale marks a crucial step in Boeing’s ongoing efforts to streamline operations and strengthen its financial position.
In a statement released on Tuesday, Boeing revealed that it would retain its “core digital capabilities” that are essential for maintaining and servicing customer fleets. However, the transaction will include the sale of Jeppesen, the iconic 81-year-old aviation navigation company that Boeing acquired back in 2000.
Strategic Divestitures to Strengthen Financials
Kelly Ortberg, Boeing’s CEO, emphasized that this divestiture aligns with the company’s broader strategy to focus on its core businesses while enhancing its balance sheet and maintaining its investment-grade credit rating.
“Targeted divestitures are a key component of our efforts to improve our financial position following a series of losses,” Ortberg commented. The deal also signals Boeing’s continued shift towards consolidating operations around its core aerospace activities.
Impact on Employees and Transition Plans
The sale affects 3,900 Boeing employees working within the digital aviation solutions segment. Boeing has committed to ensuring a smooth transition for these employees and the continued delivery of services to customers. The company is collaborating closely with Thoma Bravo to facilitate the process and minimize disruptions.
Thoma Bravo’s Investment in the Aviation Sector
Thoma Bravo, with an impressive $179 billion in assets under management, is one of the world’s largest investors in software. Known for its focus on digital businesses, Thoma Bravo’s acquisition of Boeing’s digital aviation solutions portfolio is expected to further solidify its presence in the aerospace and software sectors.
Market Response
Following the announcement, shares of Boeing rose by 1.2%, reflecting investor optimism about the company’s renewed focus on its core aerospace operations and the expected benefits of the deal.
