Boeing has finalised a deal with Thales Defense & Security for the sale of its small defence subsidiary, Digital Receiver Technology (DRT).
DRT produces hardware and software products for wireless surveillance and tracking equipment for the US military. This acquisition marks Thales’s continued expansion in the US market.
Financial terms of the transaction, which occurred this month, have not been disclosed by Boeing.
DRT was acquired by Boeing in 2008 and has been operating within Boeing Space, Intelligence & Weapons Systems unit.
The deal’s announcement follows a report by The Wall Street Journal, which highlighted Boeing’s strategy to divest non-core businesses to alleviate its debt burden.
This sale is part of Boeing’s broader initiative to consolidate its financial position in the face of challenges.
Recently, Boeing has signalled the possibility of raising up to $25bn through stock and debt offerings.
The company has also undergone a change in CEO, a slowdown in production due to regulatory scrutiny of its safety practices, and a strike involving 33,000 union workers.
The ongoing strike on the West Coast is set to be potentially resolved when workers vote on a new contract proposal.
Earlier in October 2024, Boeing announced a workforce reduction plan to cut 17,000 jobs, equating to 10% of its global workforce, and anticipated taking $5bn in charges.
In a separate development, the Royal Thai Army’s first of eight AH-6 Little Bird light attack helicopters, took its maiden flight at the end of August at Boeing’s facility in Mesa, Arizona.
