In a significant move to streamline its operations and bolster its financial standing, beleaguered aerospace giant Boeing announced today its intention to sell parts of its digital aviation solutions business to Thoma Bravo, a prominent software-focused private equity firm. The all-cash transaction, valued at $10.55 billion, signifies a strategic pivot for Boeing as it aims to concentrate on its core business operations and generate vital cash flow.

The sale encompasses Boeing’s suite of digital flight planning tools that serve both commercial and defense customers. This includes well-known products such as Jeppesen, ForeFlight, AerData, and OzRunways. According to a press release regarding the transaction, the company will preserve essential digital capabilities designed to leverage aircraft and fleet-specific data. These retained tools will continue to provide crucial services related to fleet maintenance, diagnostics, and repairs for its commercial and defense clients.

This divestment comes on the heels of a turbulent period for Boeing, which began with a catastrophic mid-air incident involving one of its flagship Max commercial jetliners last year. This crisis ultimately led to the resignation of CEO Kelly Ortberg. Since taking the helm in August, Ortberg has been diligently working to reshape Boeing’s strategy by divesting non-core elements of the business to better focus its resources and enhance its financial health.

“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,” stated Ortberg. The deal is expected to close by the end of 2025, pending regulatory approval.

Despite challenges faced by Boeing’s defense unit, which has encountered significant losses largely due to fixed-price contracts with the U.S. Department of Defense, Ortberg has classified the Defense, Space & Security division as vital to the company’s identity. Nonetheless, reports suggest that Boeing is also exploring the potential divestment of certain defense assets, including the drone firm Insitu.

As Boeing navigates these transformative changes, it also confronts a new set of challenges. The recent selection to build a next-generation fighter for the U.S. Air Force represents a critical win; however, the ongoing global trade conflict fueled by the previous administration poses substantial risks. Notably, retaliatory actions from China against tariffs imposed on U.S. goods have led to directives that restrict domestic airlines from accepting deliveries of Boeing aircraft.

As Boeing gears up for its first-quarter earnings report on April 23, the industry will be closely watching how these strategic decisions impact the company’s trajectory and overall market position in the coming years. The focus on core business areas and careful financial management will be essential as Boeing works to regain its footing in a highly competitive field.