Boeing said its $10.55 billion sale of key Digital Aviation Solutions assets to private equity firm Thoma Bravo is on track to close in early November, following regulatory approvals. The Air Current reported that sources familiar with the deal indicated the sale could close as soon as Nov. 3.
The divestiture includes Jeppesen, ForeFlight, AerData and OzRunways—longtime providers of aviation data, charting and flight-planning tools for airlines and pilots worldwide. Boeing also appeared to indicate on its third-quarter earnings call that the transaction is expected to finalize before its planned acquisition of Spirit AeroSystems.
Boeing leadership said the sale will help strengthen Boeing’s financials moving forward and will position the company to better address issues facing its “core businesses.”
“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 president and CEO Kelly Ortberg during the original April announcement.
Boeing will retain certain digital capabilities tied to fleet maintenance, diagnostics and repair services. CFO Jesus Malavé said during the company’s Oct. 29 earnings call that proceeds from the sale of ForeFlight, Jeppesen and other brands will help strengthen the company’s capital position as it works to reduce its $53 billion debt load and restore its balance sheet.
Thoma Bravo, which manages more than $179 billion in assets, said it plans to build on the near-century legacy of Jeppesen’s aviation software.
“We are proud to be investing in such an important technology platform in the broader aerospace and defense industry,” said Holden Spaht, managing partner at Thoma Bravo, earlier this year.
Approximately 3,900 employees are part of Boeing’s Digital Aviation Solutions organization. Both companies said they are coordinating to ensure a seamless transition for employees and customers ahead of the expected Nov. 3 close.
Sold to private equity. This may not end well.
It definitely wont be good for us users if Foreflight and Jeppesen, shameful!
It won’t. Fortunately, there are now competitors and the products are maturing. I’ve stuck with Wingx Pro which continues to do the job well enough, and use other vendors for my Dynon panel. At a fraction of the cost of Foreflight/Jepp. They are not perfect, but when you consider we started with Jepp Binders and fat envelopes of updates every couple of months, we’ve come a long way. Jepp in whatever incarnation will have to deal with this reality as well.