Storm
clouds
gather
over
Boeing’s
St.
Louis
headquarters.
(Michael
Marrow/Breaking
Defense)
WASHINGTON
—
Beleaguered
aerospace
giant
Boeing
announced
today
that
it
plans
to
sell
off
elements
of
its
digital
aviation
solutions
business
to
Thoma
Bravo,
a
software-focused
private
equity
firm,
in
a
deal
valued
at
$10.55
billion.
The
all-cash
transaction
would
hand
over
Boeing’s
digital
flight
planning
tools
used
by
commercial
and
defense
customers,
including
Jeppesen,
ForeFlight,
AerData
and
OzRunways.
As
part
of
the
agreement,
“Boeing
will
retain
core
digital
capabilities
that
harness
both
aircraft
and
fleet-specific
data
to
provide
commercial
and
defense
customers
with
fleet
maintenance,
diagnostics
and
repair
services,”
a
press
release
announcing
the
deal
says.
Boeing
has
been
under
pressure
since
the
mid-air
blowout
involving
one
of
the
company’s
best-selling
Max
commercial
jetliners
last
year,
kicking
off
a
crisis
that
culminated
in
the
succession
of
CEO
Kelly
Ortberg.
Since
taking
the
reins
of
the
planemaker
in
August,
Ortberg
has
spearheaded
a
strategy
to
sell
off
elements
of
Boeing’s
business
that
are
not
deemed
“core”
to
the
company
in
a
bid
to
refocus
operations
and
raise
much-needed
cash.
“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,”
Ortberg
said
of
the
Thoma
Bravo
deal,
which
is
expected
to
close
by
the
end
of
2025
if
regulators
approve.
Although
Boeing’s
defense
unit
has
faced
steep
losses
in
recent
years,
owing
in
large
part
to
fixed-price
deals
with
the
Pentagon,
Ortberg
has
deemed
the
company’s
Defense,
Space
&
Security
division
as
an
essential
part
of
the
firm’s
business.
Still,
that
hasn’t
precluded
the
company
from
reportedly
seeking
to
divest
certain
defense
assets
such
as
the
drone
firm
Insitu.
RELATED:
Trump
‘clearly
not
happy’
with
delivery
schedule
for
new
Air
Force
One
jets,
Boeing
CEO
says
The
Thoma
Bravo
deal
comes
as
the
company
faces
new
headwinds.
Although
the
firm
recently
notched
a
crucial
win
by
being
selected
to
build
a
next-generation
fighter
for
the
US
Air
Force,
a
global
trade
war
sparked
by
the
Trump
administration
now
poses
a
serious
threat
to
Boeing,
America’s
largest
exporter.
China,
for
example,
has
reportedly
retaliated
to
Trump-imposed
tariffs
by
ordering
domestic
airlines
to
refuse
deliveries
of
Boeing
jets.
Boeing
will
report
its
first
quarter
earnings
April
23.