Several private equity firms, along with at least one aerospace supplier, remain in the running to acquire Boeing’s Jeppesen navigation unit in a deal expected to exceed $8bn, according to a report by Reuters citing sources familiar with the matter.
Boeing is preparing to invite formal bids in the coming weeks.
The auction process has drawn significant interest, with private equity firms forming consortiums to enhance their competitive positioning. Among the bidders, three private equity pairings have emerged: Vista Equity Partners and Warburg Pincus; Advent International and Permira; and TPG in partnership with Francisco Partners.
Additionally, aircraft parts manufacturer TransDigm remains in contention, alongside technology-focused buyout firms Thoma Bravo and Silver Lake, both of which are pursuing separate bids.
Earlier in the process, Honeywell and Carlyle had also expressed interest. However, it remains unclear whether either firm intends to submit a final offer. Honeywell, which has a competing suite of navigation products, faces strategic considerations in advancing its bid.
If a transaction is finalised, the Jeppesen sale would rank among the most significant corporate carve-outs in recent memory. In a comparable deal, Ball Corp divested its aerospace assets to BAE Systems for approximately $5.6bn in 2023.
The final valuation for Jeppesen is expected to land between $8bn and $9bn, with sources indicating that initial expectations of a $6bn price tag have been surpassed due to robust demand.
Boeing is expected to further narrow the field of bidders in the coming weeks before final offers are submitted, according to one source.
The sale is part of Boeing CEO Kelly Ortberg’s broader strategy to streamline operations and deleverage the company by divesting non-core assets. In February, Boeing also announced the sale of its maintenance operations at Gatwick Airport to British Airways. Separately, the aerospace giant is exploring the sale of its Insitu drone business.
Jeppesen, headquartered in Englewood, Colorado, provides mission-critical navigation products and software, making it a highly attractive asset for both strategic buyers and financial sponsors. Private equity firms, in particular, are drawn to businesses with stable, recurring revenue streams, which Jeppesen’s offerings provide.
For TransDigm, which has a market capitalisation of approximately $77bn, Jeppesen would represent its largest-ever acquisition.
The company has executed multiple bolt-on deals in recent years, including the $360m acquisition of DART Aerospace in 2022, the $725m purchase of Calspan and $1.4bn buyout of CPI’s electron device business in 2023, and the $655m acquisition of Raptor Scientific in 2024.
If successful, Jeppesen would extend TransDigm’s capabilities beyond its core components business and enhance its position in the aerospace value chain.
Boeing originally acquired Jeppesen for $1.5bn in 2000. The company was founded by Elrey Borge Jeppesen, who pioneered aviation navigation charts in the 1930s while flying for Boeing-affiliated airlines.
