Boeing Sells Defense Subsidiary Amid Financial Struggles

Boeing has sold Digital Receiver Technology, a small defense subsidiary, to Thales Defense & Security. The sale comes as Boeing seeks to stabilize its finances amid challenges including potential credit rating downgrades, production delays, and ongoing strikes. Terms of the deal were not disclosed.

Boeing has finalized an agreement this month to divest a small defense subsidiary that specializes in surveillance equipment for the U.S. military. Announced on Sunday, the sale to Thales Defense & Security marks a significant move as Boeing attempts to stabilize its financial standing.

The subsidiary, Digital Receiver Technology, is being transferred to Thales Defense & Security, part of Europe's top defense electronics firm, Thales SA. While the conditions of the agreement remain undisclosed, the shift underscores Boeing's broader financial recovery strategy.

Amid challenges such as production delays, safety concerns, and a prolonged West Coast strike, Boeing has signaled intentions to generate up to $25 billion through stock sales and debt offerings to maintain its investment-grade credit rating.

(With inputs from agencies.)