Boeing [BA] on Tuesday said it has agreed to sell portions of its Digital Aviation Solutions business for $10.6 billion in cash to the software investment firm Thoma Bravo, a move initiated by new Boeing chief Kelly Ortberg who is assessing the overall portfolio to focus on core assets and raise cash to pay down debt.
The struggling aerospace and defense giant, which notched a huge win recently to develop the Air Force’s sixth generation fighter aircraft, will report first quarter financial results on Wednesday.
The pending divestiture, which is subject to regulatory approvals and is expected to close in 2025, includes the Jeppesen, ForeFlight, AerData, and OzRunways assets. Boeing will keep certain digital capabilities that relate to aircraft and fleet-specific data to continue to support its commercial and defense customers with fleet maintenance, diagnostics, and repair services, and “predictive and prognostic maintenance insights,” the company said.
“This enables all parts of the digital portfolio to focus on their strengths,” Chris Raymond, president and CEO of Boeing Global Services, said in a statement. “Our commitment to meeting our customers’ needs is unwavering as we move forward with our core products and services to support their fleets.”
Boeing said it has about 3,900 employees globally in its Digital Aviation Solutions business.
Boeing’s financial adviser on the deal is
Citi.