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ARLINGTON, Va. - Boeing [NYSE: BA], the prominent aerospace & defense player with a market capitalization of $119.89 billion, has struck a deal to sell key segments of its Digital Aviation Solutions division to Thoma Bravo, a private equity firm focusing on software investments. The all-cash transaction, announced today, will transfer ownership of the Jeppesen, ForeFlight, AerData, and OzRunways assets for $10.55 billion. According to InvestingPro data, Boeing currently operates with significant challenges, including negative EBITDA of $8.18 billion and earnings per share of -$18.36.
The aerospace giant will maintain its core digital capabilities, which provide commercial and defense customers with data-driven maintenance, diagnostics, and repair services. This move aligns with Boeing’s strategy to concentrate on its principal businesses and manage its $55.96 billion debt load while maintaining its investment-grade credit rating, according to Boeing president and CEO Kelly Ortberg. InvestingPro analysis reveals the company’s weak financial health score, suggesting this strategic realignment comes at a crucial time.
Chris Raymond, president and CEO of Boeing Global Services, emphasized the company’s ongoing commitment to customer service, stating that the focus will remain on core products and services to support customer fleets.
Thoma Bravo expressed enthusiasm for the acquisition, with Managing Partner Holden Spaht highlighting Jeppesen’s longstanding history of innovation since the 1930s. Scott Crabill, another Managing Partner at Thoma Bravo, pointed to the growth transformation of the business and the firm’s plans to support its standalone growth through strategic investments and operational improvements.
Approximately 3,900 employees are part of Boeing’s Digital Aviation Solutions organization. Both Boeing and Thoma Bravo are working to ensure a smooth transition for employees while continuing to serve customers effectively.
The sale is expected to be finalized by the end of 2025, pending regulatory approval and standard closing conditions. Citi is serving as Boeing’s exclusive financial advisor, with Mayer Brown LLP as outside counsel. Thoma Bravo has engaged Kirkland & Ellis LLP for legal counsel.
This transaction is based on a press release statement and is subject to forward-looking statements that involve risks and uncertainties, including economic conditions and regulatory changes that could affect the outcome. Boeing does not undertake any obligation to update forward-looking statements as circumstances change. For comprehensive analysis of Boeing’s financial health and future prospects, including 8 additional ProTips and detailed valuation metrics, investors can access the full Pro Research Report on InvestingPro, which covers over 1,400 US stocks with deep-dive analysis and actionable insights.
In other recent news, Boeing reported a significant increase in jet deliveries for the first quarter of 2025, with a total of 130 commercial airplanes delivered, including 104 of its 737 MAX aircraft. This marks a notable improvement from the first quarter of the previous year, where Boeing delivered 83 jets. The company also completed deliveries of 26 units across its Defense, Space & Security Programs. Despite these achievements, Boeing faces challenges as China has ordered its airlines to stop accepting deliveries of Boeing jets, a move linked to escalating trade tensions and retaliatory tariffs between the U.S. and China. This geopolitical tension poses potential risks to Boeing’s future sales and operational stability. Additionally, Benchmark analyst Josh Sullivan adjusted Boeing’s price target to $215 from $250 while maintaining a Buy rating, citing ongoing challenges such as supply chain issues and the FAA’s production cap on the 737-MAX. Sullivan remains optimistic about Boeing’s long-term prospects, highlighting the company’s focus on free cash flow. Investors are awaiting Boeing’s detailed financial results for the first quarter, which are expected to be released on April 23.
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