Thoma Bravo, a technology-focused buyout firm, is in advanced negotiations to acquire Boeing’s (NYSE: BA) Jeppesen navigation unit, with an announcement expected later this week, according to Bloomberg News. Sources familiar with the discussions revealed the details on Monday.
The potential sale of Jeppesen is part of Boeing CEO Kelly Ortberg’s broader strategy to streamline operations and reduce the company’s debt by divesting non-core assets.
Neither Boeing nor Thoma Bravo responded to requests for comment from Reuters.
Jeppesen, a provider of navigation software and products, has drawn interest from several private equity firms and at least one aerospace supplier. Final bids for the unit have been reported to value it between $8 billion and $9 billion. Earlier reports indicated that Boeing had initially set a price target above $6 billion when it began the sale process last year, but competition has driven the value higher.
Based in Englewood, Colorado, Jeppesen is seen as an attractive asset for both aerospace contractors and private equity firms, which typically seek steady cash-flow-generating businesses.
Boeing acquired Jeppesen for $1.5 billion in 2000. Founded by Elrey Borge Jeppesen, the company began selling the world’s first navigation charts for pilots in the 1930s, while Jeppesen was flying for Boeing-owned airlines.
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