Boeing [NYSE:BA], the aerospace and defense giant, is receiving interest from a foreign strategic in the late stages of the sale of its Digital Receiver Technology (DRT) business, said three sources familiar with the matter and a sector advisor.

Two of these sources and the sector advisor said France-based aerospace and defense company Thales [EPA:HO] is the foreign strategic involved. The two sources said they didn’t know if Boeing and Thales had entered exclusive sale talks.

Thales has been seeking growth opportunities in the US, one of the sources said. This source added that with the limited growth prospects domestically and the increased regulatory hurdles in Europe, the US is a market where it can grow, noting its acquisition of California-based Imperva last year as an example.

General Dynamics [NYSE:GD] also showed interest in the DRT asset earlier in the process, one of the sources and a fourth source familiar said, but it had dropped out.

This news service reported in June 2023 that Arlington, Virginia-based Boeing was exploring the sale of DRT via Baird.

A deal may be taking time as regulatory approvals may be needed with the potential buyer being a foreign strategic, two of the sources said, noting it has been a long process.

Boeing also announced its proposed USD 8.3bn acquisition of Spirit AeroSystems [NYSE:SPR] on 1 July.

Boeing acquired Germantown, Maryland-based DRT in 2008 for an undisclosed amount. DRT makes software defined radio based technical solutions. Its specific areas of expertise include wireless communications, radio frequency systems and custom software development. DRT generates less than USD 100m a year in revenue, as reported.

In November 2022, Boeing announced its Boeing Defense, Space & Security (BDS) business would consolidate its eight divisions into four: Vertical Lift; Mobile, Surveillance & Bombers; Air Dominance; and Space, Intelligence & Weapons Systems. DRT is part of the Space, Intelligence & Weapons Systems division.

Boeing’s BDS business had around USD 24.9bn in revenue for 2023, about 7.3% higher than the USD 23.2bn in sales the year prior, according to its latest 10-K.

Boeing has a market capitalization of around USD 100bn. A company spokesperson said, “Consistent with our corporate practice, Boeing doesn’t comment on potential market rumors or speculation.”

Thales and General Dynamics declined to comment. Baird did not return requests for comment.