Boeing has finalized the sale of key assets from its Digital Aviation Solutions division to private equity firm Thoma Bravo in an all-cash transaction valued at $10.55 billion. This divestiture encompasses notable brands, including Jeppesen, ForeFlight, AerData, and OzRunways. The transaction, initially announced in April, has now been completed following the necessary regulatory approvals, as confirmed by Thoma Bravo in a statement released earlier today.
The acquired businesses will operate under the name Jeppesen ForeFlight, an independent company with headquarters in Denver and San Francisco. Boeing officials said that the transaction will enhance the company’s capital structure and enable the manufacturing giant to concentrate on its core business, which includes the remaining elements of its digital services portfolio.
A Win-Win Transaction
The all-cash deal transfers some of Boeing’s most recognizable software and data units to Thoma Bravo, which manages more than $181 billion in technology investments. By carving the four businesses out from a large industrial company like Boeing, Thoma Bravo aims to integrate their strengths and enable them to move faster, innovate more rapidly, and focus purely on software development and customer-facing solutions.
Boeing also benefits significantly from the transaction. The divestiture will strengthen its balance sheet, reduce debt, and allow the company to concentrate on its core manufacturing and services operations. “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,” Boeing CEO Kelly Ortberg said when the deal was announced in April.
Jeppesen ForeFlight will be led by Brad Surak, formerly head of Boeing Digital Aviation Solutions. He was understandably enthusiastic about the finalization of the transaction:
“Backed by 90 years of Jeppesen’s gold-standard data and ForeFlight’s relentless spirit of exploration, this combination is building the most unified, intuitive platform in aviation. As we return to independence alongside a leader in software private-equity investing, we’re enabled to move faster, think bigger, and innovate.”
What Is Boeing Selling?
Boeing is selling four specific companies and their associated digital assets in its transaction with Thoma Bravo. All four of the companies were acquired in the past two decades as Boeing built out its digital services portfolio. Jeppesen is by far the largest of the subsidiaries: Founded in 1934 as a producer of early aeronautical charts, the company currently has over 3,200 employees who will form the core of the new Jeppesen ForeFlight organization.
|
Boeing’s $10.55 Billion Divestitures |
|
|
Company |
Description Of Services |
|
Jeppesen |
Provides navigational information, standardized aeronautical charts (digital and paper), flight planning services, operations tools, and global navigation databases for the aviation industry. |
|
ForeFlight |
Offers an integrated Electronic Flight Bag (EFB) app and software platform used by pilots and operators for flight planning, navigation, weather monitoring, and hazard awareness. |
|
AerData |
Supplies integrated software solutions and services for aircraft and engine asset management, including lease management, digital records (STREAM), and engine fleet planning (EFPAC). |
|
OzRunways |
Provides EFB application and services with a focus on comprehensive official aviation data and charts for the Australian and New Zealand markets. |
Boeing is not done with its planned divestitures. The company is actively attempting to sell its defense subsidiary Insitu, a manufacturer of small, long-range military drones. Its products include the ScanEagle surveillance and reconnaissance drone and the RQ-21A Blackjack, used for military intelligence and surveillance. These drones are used by various countries, including in the war in Ukraine. Analysts estimate that the sale could fetch between $500 million and $1 billion.
What Is Boeing Keeping?
While it is selling the majority of its Digital Aviation Solutions business, Boeing is retaining specific digital capabilities that focus on fleet maintenance, diagnostics, and repair services for its commercial and defense customers. The retained parts of Boeing’s digital services portfolio include:
- Fleet Maintenance Services: Digital tools and platforms that provide insights and support for the ongoing upkeep of aircraft fleets.
- Diagnostics and Repair Services: Core digital expertise that utilizes aircraft- and fleet-specific data to facilitate troubleshooting, repair procedures, and maintenance, repair, and overhaul (MRO) activities.
- Predictive and Prognostic Maintenance Insights: The ability to leverage specific data to forecast maintenance needs and prevent future issues.
Ortberg says that these remaining digital functions are considered “core to Boeing’s primary business of designing, building, delivering, and maintaining its airplanes,” and they will continue to operate within the Boeing Global Services division.
