Aerospace major Boeing announced on Tuesday that it will sell parts of its digital aviation solutions business to software-focused investment firmThoma Bravo in a deal valued at $10.55 billion.
The agreement includes the sale of Jeppesen, an 81-year-old aviation navigation company that Boeing acquired in 2000. Despite the divestiture, Boeing stated it will retain its “core digital capabilities” to continue supporting fleet maintenance and repair services for its customers, AFP reported.
Boeing CEO Kelly Ortberg described the sale as part of a broader strategy to streamline operations and strengthen the company’s financial standing following a period of sustained losses.
“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 in a statement.
Approximately 3,900 employees are currently part of Boeing’s digital aviation solutions unit. The company said it is working closely with Thoma Bravo to ensure a smooth transition for employees and uninterrupted service to customers.
Thoma Bravo, which manages around $179 billion in assets, is one of the largest software-focused investors globally.
Following the announcement, shares of Boeing rose 1.2% in early trading.