(Reuters) -Technology-focused buyout firm Thoma Bravo is in advanced talks to acquire Boeing’s Jeppesen navigation unit, with an announcement anticipated later this week, Bloomberg News reported on Monday, citing people familiar with the matter.
The planned sale of Jeppesen is part of CEO Kelly Ortberg’s strategy to streamline Boeing’s operations and reduce its debt pile by selling non-core assets.
Boeing declined to comment, while Thoma Bravo did not immediately respond to Reuters’ request for comment.
Reuters reported last month that Jeppesen, a provider of navigation products and software, had attracted interest from several private equity firms and at least one aerospace supplier, with final bids valuing the unit at over $8 billion.
Final offers for Jeppesen were expected to value the unit between $8 billion and $9 billion, according to the Reuters report. Boeing had initially aimed for a price above $6 billion when it launched the auction last year, but strong interest from potential buyers drove the valuation higher.
Englewood, Colorado-based Jeppesen is seen as a sought-after asset that could boost aerospace contractors and private equity firms, which typically like to buy businesses to generate steady cash flow.
Boeing acquired Jeppesen for $1.5 billion in 2000. The company’s founder, Elrey Borge Jeppesen, started selling the world’s first navigation charts for pilots in the mid-1930s, while flying for Boeing-owned airlines.
(Reporting by Nilutpal Timsina in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
