Software investment firm Thoma Bravo has agreed to acquire portions of Boeing’s digital aviation solutions business in an all-cash transaction valued at approximately $10.55 billion.
Boeing said Tuesday the deal will help strengthen its capital structure and is expected to be finalized by the end of 2025, subject to regulatory approval and other customary closing conditions.
Focusing on Core Business
“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, president and CEO of Boeing.
The aerospace and defense contractor will retain its core digital capabilities that leverage aircraft and fleet-specific data to provide fleet maintenance, diagnostics and repair services for defense and commercial clients.
“This enables all parts of the digital portfolio to focus on their strengths,” said Chris Raymond, president and CEO 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.”
Terms of the Proposed Deal
The definitive agreement covers the acquisition of Jeppesen, ForeFlight, AerData and OzRunways assets from Boeing and includes principles for data sharing and future collaborations to ensure continuity of operations under Thoma Bravo’s ownership.
“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.”
Boeing’s Digital Aviation Solutions organization has approximately 3,900 employees worldwide. Boeing is working with the investment firm to ensure a seamless transition for employees.
Citi is acting as Boeing’s exclusive financial adviser and Mayer Brown is serving as the aerospace company’s outside counsel in the transaction.
Kirkland & Ellis is serving as Thoma Bravo’s legal counsel.