Boeing Concludes Purchase of Jeppesen Sanderson Inc.
Jeppesen, world leader in flight information services, is another key to Boeing's strategic growth plan
The Boeing Company (NYSE:BA) has concluded its purchase of Jeppesen Sanderson Inc., after receiving approval from government authorities in the U.S. and Germany. Jeppesen becomes a wholly owned subsidiary of Boeing, reporting to the Commercial Aviation Services business unit of Boeing Commercial Airplanes Group (BCAG), and will support the aviation industry as a "stand-alone" business.
Jeppesen provides a full range of print and electronic flight information services, including navigation data, computerized flight planning, aviation software products, aviation weather services, maintenance information, and pilot training systems and supplies. Jeppesen counts among its customer base the majority of airlines around the world and all U.S. airlines. It also serves the large general aviation and business aviation markets.
"If you're a pilot almost anywhere in the world, you know Jeppesen," said John Hayhurst, vice president of business development for Commercial Aviation Services. "Jeppesen is the world's No. 1 source for flight information services, and that makes it a perfect fit for our growing aviation services portfolio. We've made it clear that we are going to offer global aerospace solutions, and growing our aviation services business is a major part of that. Closing the deal on Jeppesen means that we have another enduring global brand. Our ability to create better and faster solutions for the aviation industry is increased. It accelerates the ability to develop and offer new electronic information management services."
The acquisitions of Continental Graphics in the maintenance area, The Preston Group in air traffic management, and now Jeppesen in flight operations, provides opportunities to leverage intellectual capital and technology as Boeing moves into new frontiers in aviation services.
Jeppesen employs1,400 people at its headquarters in Denver, Colo., and at other offices in Germany, Australia, China, the U.K. and other U.S. locations.
"We are delighted to be a part of The Boeing Company," said Horst Bergmann, CEO of Jeppesen. "Working together to create an array of new digital information services and to speed the movement of our existing products to new digital platforms is a thrilling prospect for us."
Jeppesen uses sophisticated databases to develop its many products. For instance, its Flight Information Master Database for navigation data contains more than 1 million records, built from the ground up. Jeppesen's flight information analysts edit and verify an average of approximately 30,000 pieces of source information each month, compiled from more than 180 separate agencies worldwide. This database is the core of Jeppesen NavData Services, recognized by airlines, corporate flight departments and major avionics manufacturers as the most complete and accurate aeronautical information available.
Forward-Looking Information Is Subject to Risk and Uncertainty Certain
statements in this release contain "forward-looking" information that involves risk and uncertainty, including projections for revenues, earnings, earnings per share, market growth, product development, statements regarding goals, and other trend projections. This forward-looking information is based upon a number of assumptions including assumptions regarding market growth, product development, demand; internal performance; and government policies and actions. Actual future results and trends may differ materially depending on a variety of factors, including the company's successful execution of internal performance plans including research and development, market growth, product development, the cyclical nature of the company's business, volatility of the market for certain products, product performance risks, regulatory uncertainties, collective bargaining labor disputes, performance issues with key suppliers and customers, governmental export and import policies, global trade policies, worldwide political stability and economic conditions, changing priorities or reductions in the U.S. Government or foreign government budgets, termination of government contracts due to unilateral government action or failure to perform,;and legal proceedings. Additional information regarding these factors is contained in the company's Annual Report on Form 10-K for the year ended 1999 and Form 10-Q for the quarterly period ended June 30, 2000.