Boeing is set to sell its iconic Jeppesen navigation and flight planning business to private equity firm Thoma Bravo for a mind-boggling $10.6 billion, in what constitutes a strategic overhaul of the aerospace giant’s business plan. The sale was initiated as Boeing is looking to refine its strategic emphasis on core aviation manufacturing and services.
What’s Changing
Jeppesen, a unit renowned for its cutting-edge navigation charts, flight planning software, and aviation data solutions, has been a mainstay in Boeing’s digital portfolio. Thoma Bravo’s acquisition is likely to drive innovation and increase Jeppesen’s presence through increased investment in digital transformation and analytics.
Boeing’s Strategy
Notwithstanding the sale, Boeing made it clear that it will maintain and oversee key aviation information needed for its repair, maintenance, and diagnostics business. The action indicates Boeing’s determination to simplify its operations, minimize liabilities, and shift its attention towards supporting commercial aircraft production in the face of continued supply chain and safety issues.
Industry Impact
The deal marks a larger pattern of aerospace solutions tech-driven investment, as private equity participants such as Thoma Bravo bet large on data intelligence and aviation software. For Boeing, the sale should unlock capital and streamline its digital environment as it struggles back from regulatory and operational travails.
