Lufthansa explores software asset sale as it weighs deal worth nearly €1bn

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Lufthansa software asset sale

Highlights

Lufthansa is exploring a sale of its Lufthansa Systems assets, including Lido, NetLine, and Sirax, valuing the package at just under €1bn.
The targeted units generate over €200mn in revenue and about €50mn in EBITDA, attracting potential private equity interest, though discussions are at an early stage.
Lufthansa continues its non-core asset divestment strategy, following €450mn AirPlus sale in 2024 and a 2023 catering unit disposal, as the airline sector contends with doubled jet fuel costs and rising environmental charges.

Potential divestment of Lufthansa Systems assets

As reported by Financial Times, Lufthansa has hired bankers to pursue a possible sale of businesses within its Lufthansa Systems division that provide IT services to the aviation industry, according to people familiar with the matter. The assets under discussion include Lido and NetLine, which offer flight planning, navigation and operational management services such as crew management and schedule planning.

The process could also include the group's Sirax revenue accounting products, the people said, with the combined value of the assets seen at just under €1bn. One option under consideration is a sale of almost all of Lufthansa Systems, excluding one unit that provides specialist bespoke services to the airline.

The people cautioned that the discussions remain at an early stage and no final decision has been taken. They added that the businesses generate well above €200mn in revenue and roughly €50mn in EBITDA, making them likely candidates for interest from private equity buyers.

Capital priorities and wider airline sector pressures

Lufthansa has been disposing of non-core units for several years as part of a strategy focused on passenger flights, cargo transport and maintenance. The airline sold its catering business in 2023 and sold its AirPlus credit card business in 2024 for €450mn.

The group is also planning major new investments. Earlier this week, it won a bid to acquire a large minority stake in TAP, a transaction set to expand its scale among global airline groups, although people familiar with the matter said funding for that deal does not depend on a sale of the software assets.

Across the sector, airline groups are trying to cut costs and offload non-core businesses as they face higher expenses in the coming year. Jet fuel prices have doubled since the Iran war, while European carriers are also dealing with rising environmental charges and heavy aircraft spending commitments over the next decade.

Comparable deals have drawn buyout interest in recent years, including Thoma Bravo's $10.5bn agreement last year to buy parts of Boeing's digital aviation unit, including Jeppesen assets. Lufthansa declined to comment.

Our earlier article on India’s disinvestment programme explained that most proceeds since FY 2016 have come from market-based routes such as ETFs, public offerings and buybacks, while strategic sales transferring management control made up a relatively small share. It also highlighted how the planned IDBI Bank stake sale could become a standout strategic transaction that materially improves annual disinvestment receipts and helps bridge repeated gaps versus budget targets.

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