According to multiple reports, Boeing announced today it had entered an agreement to sell “significant parts” of its Digital Aviation Solutions (DAS) business unit to private equity firm Thoma Bravo, self-described as, “a leading private equity investment firm building on a 40-plus-year history of providing capital and strategic support to experienced management teams and growing software and technology companies.”
Assets of DAS include key GA suppliers such as Jeppesen, ForeFlight, AerData, and OZRunways. The all-cash deal is reportedly worth $10.5 billion. “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, Boeing president and CEO.
The selloff is seen by investors as an effort to “streamline” Boeing’s portfolio of companies, strengthening its financials, and making capital available for advanced-tech programs. It is seen as a refocus on Boeing’s core businesses, such as designing, developing, and manufacturing commercial and military aircraft.
The divestiture will impact some 3,900 employees associated with Boeing’s DAS business unit. Boeing said it is cooperating with buyer Thoma Bravo to effect as seamless a transition as possible with employees and customers in mind, including all contractual obligations. The transaction is expected to close by year end, pending regulatory approvals and “customary closing conditions.”
