Boeing sells small defense surveillance unit to Thales

(Reuters) -Boeing closed a deal this month to sell a small defense subsidiary that makes surveillance equipment for the U.S. military, the company said on Sunday, as the planemaker looks to shore up its struggling finances.

Boeing (NYSE:) said in a statement that Digital Receiver Technology, which makes wireless equipment used by intelligence services, will be sold to Thales Defense & Security, an arm of Europe’s largest defence electronics firm, Thales SA.

Boeing did not disclose the terms of the deal.

The Wall Street Journal reported earlier on Sunday that Boeing had agreed a deal to offload a small defense subsidiary, without naming the unit.

Last week, Boeing said it could raise as much as $25 billion in stock and debt as its investment-grade credit rating comes under threat from production delays, safety problems and a month-long strike in its U.S. planemaking heartland.

Striking Boeing factory workers on the West Coast, most in Washington state, will vote on Wednesday on a new contract proposal that could end the strike, which has halted production of the 737 MAX, 767 and 777 jets.