Market Analysis

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Technology-focused buyout firm Thoma Bravo is reportedly in advanced negotiations to acquire Boeing's Jeppesen navigation unit, with an announcement expected later this week, according to Bloomberg News sources familiar with the matter.

The planned sale of Jeppesen aligns with CEO Kelly Ortberg's strategy to streamline Boeing's operations and reduce its debt by divesting non-essential assets. Neither Boeing nor Thoma Bravo responded to Reuters' requests for comment.

Jeppesen, a provider of navigation software and products, has attracted significant interest from multiple private equity firms and at least one aerospace supplier. The final bids for the unit are expected to be valued between $8 billion and $9 billion, higher than Boeing's initial asking price of over $6 billion when the auction began last year. Strong demand from potential buyers has pushed the valuation upwards.

Headquartered in Englewood, Colorado, Jeppesen is considered an attractive asset, appealing to aerospace contractors and private equity firms looking to acquire businesses that generate steady cash flow.

Boeing acquired Jeppesen for $1.5 billion in 2000. The company was founded by Elrey Borge Jeppesen in the 1930s when he began selling the world’s first navigation charts for pilots while working for Boeing-owned airlines.

Paraphrasing text from "Reuters" all rights reserved by the original author