Ortberg CEO: "Focusing on Core Businesses... Strengthening the Balance Sheet"
U.S. aircraft manufacturer Boeing is selling four business units of its Digital Aviation division to private equity firm Thoma Bravo for $10.55 billion (approximately 15 trillion won).
On April 22 (local time), Boeing announced in a press release that the assets to be sold include Jeppesen, which provides pilots with navigation charts and information; ForeFlight, an app that assists with flight planning and weather monitoring; as well as Airplane Data and OzRunways.
Boeing stated that it will retain its core digital capabilities, which utilize data from aircraft and individual airplanes to provide maintenance, diagnostics, and repair services to both commercial and military customers. The company added that the transaction will be completed entirely in cash by the end of the year.
The Digital Aviation division employs approximately 3,900 people worldwide, and Boeing explained that some employees will remain with the company.
Kelly Ortberg, who became Boeing's Chief Executive Officer (CEO) in August of last year, said, "This transaction is a key element of Boeing's strategy to focus on core businesses, strengthen our balance sheet, and prioritize investment-grade ratings."
Boeing has been struggling with safety and quality issues that came to light following fatal crashes involving the 737 MAX model in 2018 and 2019. In January of last year, a 737 MAX 9 passenger jet was forced to make an emergency landing after a window and part of the fuselage were torn off during flight. Additionally, production of the MAX was halted for two months in the fall due to a strike, which further worsened the company's financial situation and pushed it to the brink of a downgrade to speculative grade.
In October of last year, Boeing raised funds by selling $19 billion worth of company-held shares and American Depositary Receipts.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
