– Boeing has hired an adviser to sell its defense subsidiary Insitu, a maker of small, long-range military drones, Bloomberg News reported, citing people familiar with the matter. The aviation giant seeks to shed non-core assets and focus on its commercial and defense businesses.
Insitu is drawing interest from private equity firms and corporate buyers, and could be valued at about $500 million in a sale, according to Jefferies analysts cited by Bloomberg News.
Boeing in 2008 acquired Insitu, which makes drones such as the ScanEagle surveillance and reconnaissance device. Ukraine’s military uses Insitu’s drones in war against Russia.
A spokeswoman for Boeing declined to comment on Insitu.
Amid efforts to increase cash flow and pay down debt, Boeing (BA) is looking for assets to sell, including its defense unit’s autonomous systems businesses. Boeing (BA) last year tested buyer interest in its Orca drone submarines before deciding to hold onto the business.
Source: Seeking Alpha