Boeing Agrees to Sell Digital Aviation Solutions to Thoma Bravo for $10.55 Billion

Boeing to Sell Portions of Digital Aviation Solutions Business

In a significant move, Boeing [NYSE: BA] has entered into a definitive agreement with Thoma Bravo, a prominent software investment firm, to sell parts of its Digital Aviation Solutions business for a substantial sum of $10.55 billion. This all-cash transaction not only represents a pivotal shift for Boeing but also indicates the company's strategic intent to streamline operations and concentrate on its core competencies in the aerospace sector.

The assets being sold include well-known brands such as Jeppesen, ForeFlight, AerData, and OzRunways. Boeing will retain essential digital capabilities that utilize aircraft and fleet-specific data, allowing it to continue providing support related to fleet maintenance, diagnostics, and repair services. Such data-driven insights will remain pivotal for both commercial and defense customers, focusing on predictive and prognostic maintenance.

Kelly Ortberg, Boeing's president and CEO, emphasized that this transaction is integral to the company’s strategy. It allows Boeing to bolster its financial health, enhance its balance sheet, and uphold its investment-grade credit rating. He noted that this step is part of a broader mission to focus on core businesses, situating Boeing for sustainable success in a competitive market.

Chris Raymond, CEO of Boeing Global Services, echoed this sentiment by stating, “All parts of the digital portfolio can now concentrate on their individual strengths. Our commitment to meeting customer needs is unwavering as we move ahead with our core products and services designed to support our fleets.”

The acquisition is anticipated to empower Thoma Bravo in expanding the capabilities of the Digital Aviation Solutions business. Holden Spaht, a Managing Partner at Thoma Bravo, expressed pride in investing in what he termed a crucial technology platform within the aerospace and defense landscape. With a rich history that traces back to the 1930s, Jeppesen has consistently been at the forefront of technological innovation, and Thoma Bravo is excited to enhance its growth potential further.

Scott Crabill, another Managing Partner at Thoma Bravo, remarked on the impressive growth transformation the business has undergone in recent years. He highlighted Thoma Bravo’s extensive history of supporting leading technology companies in partnership with existing management teams. The firm intends to bolster growth objectives through strategic investments and the implementation of operational best practices.

Boeing’s Digital Aviation Solutions organization, which employs approximately 3,900 individuals globally, will see a transition with this sale. Boeing is actively working alongside Thoma Bravo to ensure that this change is as seamless as possible for all employees involved while maintaining compliance with customer obligations and service commitments.

The transaction is set to finalize by the end of 2025, pending regulatory approval and customary closing conditions. With Citi serving as the exclusive financial advisor to Boeing and Mayer Brown LLP and Kirkland Ellis LLP acting as legal counsels to Boeing and Thoma Bravo respectively, all parties are aligning their efforts towards a successful completion of this significant deal.

This development marks a pivotal moment not just for Boeing, but also for the digital aviation and software investment sectors. As Boeing focuses on refining its core business operations while divesting certain digital assets, the aerospace industry can expect a reshaping period characterized by strategic alignments and technological advancements.

In conclusion, the sale of parts of Boeing's Digital Aviation Solutions business to Thoma Bravo for $10.55 billion highlights a strategic refocus for Boeing, allowing the aerospace giant to enhance its operations while empowering Thoma Bravo to build upon Jeppesen's legacy of innovation. As the transaction unfolds, both organizations aim to continue delivering unparalleled service and cutting-edge solutions to their clients.