OzRunways sold (again)

Today it has been announced that Thoma Bravo are acquiring Jeppesen (and other digital products including ForeFlight and OzRunways) for $US 10.55B. Thoma Bravo are a private equity firm based in Chicago. It is expected that the deal will close by the end of 2025.

The price paid (representing an approx. 8x multiple of Jeppesen’s reported 2023 revenue of USD $1.3bn) raises questions about how Thoma Bravo will deliver a return on the amount it has invested. Without commenting on this specific deal or this acquirer, private equity firms often seek to increase the value of their investments by increasing near-term revenue (by, for example, adjusting prices) and/or cutting costs (including employee costs).

Time will tell whether there will be any flow-on effects for Jeppesen, ForeFlight and OzRunways customers in terms of pricing and customer service.

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