Archer Aviation to Acquire Boeing's eVTOL Unit Wisk Aero in Stock-for-Stake Deal
Archer Aviation has agreed to acquire Boeing's eVTOL subsidiary Wisk Aero, along with drone maker Insitu and air traffic software firm Skygrid, in exchange for a minority stake in Archer. Boeing will receive 19.75% of Class A shares and may invest up to $55 million in Archer's next funding round before March 31, 2027. The transaction, expected to close by end of 2026, marks a strategic shift for Boeing to focus on core commercial, defense, and global services operations.
Deal Overview
Boeing has agreed to sell three of its subsidiaries to electric aircraft startup Archer Aviation in exchange for a minority equity stake, according to a securities filing made public on Monday. The transaction involves the transfer of Wisk Aero, a manufacturer of electric vertical take-off and landing (eVTOL) aircraft; Insitu, a drone company; and SkyGrid, an air traffic software firm. Under the terms, Boeing will receive a 19.75% ownership interest in Archer's Class A shares, along with options to acquire additional shares over the next four years.
In a related commitment, Boeing has agreed to invest up to $55 million in stock in Archer's next funding round, with the investment window open until March 31, 2027. The sale is expected to close by the end of 2026.
Strategic Rationale
The pending sale aligns with Boeing's stated priority to concentrate on its commercial, defense, and global services businesses, with a renewed focus on safety and quality in its aircraft manufacturing processes. This move follows a series of portfolio adjustments by the aerospace giant. In 2025, Boeing sold a portion of its digital aviation software business to private equity firm Thoma Bravo for $10.55 billion. The company also reacquired fuselage supplier Spirit AeroSystems for $8.4 billion, while divesting certain assets to rival Airbus to satisfy global regulatory requirements.
Beyond the equity stake, the agreement includes a collaborative framework for the two companies to jointly improve and develop new products, as stated by Archer's CEO and Chairman Adam Goldstein during a second-quarter earnings call on Monday.
Technology and Collaboration
Upon closing, Archer will assume ownership of Wisk's intellectual property. Archer will share Wisk's autonomous flight technology with Boeing for application in Boeing's next-generation commercial and defense aircraft, according to the press release announcing the deal.
Goldstein credited Brian Yutko, vice president of product development for Boeing's commercial plane segment, for fostering the business relationship between the two entities. Yutko previously served as Wisk's CEO.
“This transaction is a win-win for Boeing and Archer,” Yutko said in a statement. “It allows Wisk, SkyGrid and Insitu to accelerate capability development and time to market while ensuring Boeing capitalizes on its investments in these technologies over the past two decades through continued development in our core businesses.”
Historical Context
The deal marks a significant shift from the contentious legal history between Archer and Wisk. In 2021, Wisk sued Archer for alleged trade secret theft and patent infringement, according to court documents. Wisk accused Archer's CTO Thomas Muniz, then vice president of engineering, of wiping computer activity—including file browsing and downloading records—from one of his computer hard drives before joining Archer. Wisk also alleged that Muniz and Archer had recruited Wisk employees to join the company.
The litigation was resolved in August 2023, when Archer, Wisk, and Boeing reached a settlement for an undisclosed amount. The parties also entered into a collaboration agreement to advance products in the advanced air mobility sector. As part of that settlement, Archer agreed to designate Wisk as the exclusive autonomy technology provider for new aircraft models.
Archer's Diversification
While Archer's primary focus remains electric air taxis, the company has been broadening its aerospace portfolio to include defense applications. In July, Archer and defense startup Anduril unveiled two autonomous aircraft variants—Halo and Thunder—developed at the Farnborough International Airshow in England.
Halo is an autonomous VTOL designed for both commercial and defense use. For commercial clients, it is expected to serve primarily cargo and rescue operations, as detailed in the Q2 securities filing. Thunder is a Group 5 autonomous attack drone, with a maximum take-off weight of up to 1,320 pounds and an altitude ceiling of up to 18,000 feet mean sea level, per the military's Joint Air Operations guidance.
Goldstein indicated that the three acquisitions, particularly Wisk, will enable Archer to accelerate its Halo and Thunder programs “at a fraction of the time it would have taken us to achieve the same results organically.”
The subsidiaries are also expected to contribute to Archer's revenue growth. Insitu, for instance, generates over $200 million in annual revenue across 35 countries, and has built more than 4,000 Group 2 and 3 drones to date. Drones in these groups weigh between 55 and 1,320 pounds and operate at altitudes ranging from 3,500 feet above ground level up to 18,000 feet mean sea level, according to the same military guidance.
“That, in addition to our existing air taxi platform, our Halo/Thunder platform and aviation-focused AI solutions, will significantly change the profile for Archer and our path to meaningful revenue in the years to come,” Goldstein said. “We're not just an air taxi company anymore.”