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Investing.com -- Boeing (NYSE:BA) shares climbed 3.25% today as the aerospace giant announced a significant deal to sell parts of its Digital Aviation Solutions business to Thoma Bravo, a leading software investment firm. The all-cash transaction, valued at $10.55 billion, is set to bolster Boeing’s capital structure and allow the company to concentrate on its core operations, including essential technical services.
The agreement involves the sale of key assets such as Jeppesen, ForeFlight, AerData, and OzRunways, while Boeing retains core digital capabilities critical for fleet maintenance and diagnostics. This strategic move comes ahead of Boeing’s highly anticipated earnings report tomorrow, with investors reacting positively to the news.
"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 Boeing’s president and CEO Kelly Ortberg. The company’s decision to streamline its business and strengthen its financial position has been well-received in the market, as reflected in the stock’s performance today.
Boeing’s Digital Aviation Solutions division employs approximately 3,900 people globally. The company aims for a smooth transition for its workforce and continuity in customer service throughout the sale process. The transaction is anticipated to close by the end of 2025, pending regulatory approvals and customary closing conditions.
The sale is seen as a strategic pivot for Boeing, enabling a sharper focus on its mainstay aviation and defense operations. By divesting these digital assets, Boeing is poised to enhance its financial flexibility and dedicate resources to areas where it holds competitive advantages.
Investors will be closely monitoring the impact of this sale on Boeing’s upcoming earnings report, amid ongoing tariff concerns and lingering safety issues.