Boeing Stock: Digital Aviation Unit Sold for $10.55 Billion

Boeing announced Tuesday the sale of portions of its Digital Aviation Solutions business to private-equity firm Thoma Bravo for $10.55 billion in cash. The transaction, which includes the navigation unit Jeppesen, ForeFlight, AerData and OzRunways, sent Boeing's stock up approximately 2 percent at market close. The deal represents significant value creation for Boeing, which originally acquired Jeppesen in 2000 for just $1.5 billion. According to reports, competition for these assets was fierce, with Thoma Bravo outbidding rivals including TPG and Advent. Not all digital capabilities will be transferred in the deal - Boeing will retain critical fleet maintenance and diagnostic technologies. Approximately 3,900 employees worldwide will be affected by the transaction, with both companies pledging to ensure a smooth transition for the workforce.

Strategic Debt Reduction

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The divestiture aligns with CEO Kelly Ortberg's strategy to reduce the company's debt burden by selling non-core assets. It follows February's sale of maintenance operations at Gatwick Airport to British Airways, with the drone business Insitu reportedly next on the chopping block. While streamlining through these sales, Boeing is simultaneously pursuing the acquisition of key supplier Spirit AeroSystems, expected to complete later this year. The Thoma Bravo transaction isn't expected to close until late 2025, pending regulatory approvals and other standard closing conditions. Investors are now turning their attention to Boeing's first-quarter results, due to be released Wednesday.