Archer Aviation announced on Monday it will acquire Boeing's electric aircraft subsidiary Wisk Aero, along with two other units, in exchange for a nearly 20% equity stake in the air-taxi company. The deal includes the acquisition of drone manufacturer Insitu and airspace-services provider SkyGrid. As part of the transaction, Boeing will receive Archer shares representing 19.75% of the company's outstanding Class A stock and will gain the right to appoint a director to Archer's board.
The agreement comes as the electric vertical takeoff and landing (eVTOL) sector faces challenges in certifying aircraft and reaching commercial scale at competitive prices. As commercial rollouts have taken longer than initially projected, many firms in the industry have shifted focus toward military, cargo, and government contracts to secure revenue and funding. Boeing stated the move is intended to streamline its portfolio and focus on its core commercial and defense aircraft businesses while withdrawing from direct air-taxi development.
Under the terms of the deal, Boeing and Archer will establish a collaboration and technology-sharing agreement. This allows Boeing to maintain access to Wisk’s autonomous-flight technology for its own future aircraft programs. Archer CEO Adam Goldstein stated in an interview that the acquisition of Insitu—a defense business generating more than $200 million in annual revenue—will allow Archer to generate immediate cash flow in the drone market. Archer shares rose approximately 14% in morning trading following the announcement.
The deal also changes the day-to-day operations for Boeing as it steps back from the air-taxi market to focus on its primary commercial and defense lines. While Boeing exits direct development, it retains a nearly 20% stake in Archer and secures a board seat, ensuring it maintains a financial interest in the sector's future. The technology-sharing agreement ensures that autonomous-flight software developed by Wisk remains available for Boeing’s existing and future aircraft, which may eventually influence the safety and automation features found in commercial flights and defense systems.
This transaction sets a precedent for consolidation in the emerging electric aircraft market as companies seek to mitigate the high costs of certification and infrastructure. By absorbing a profitable defense drone unit, Archer diversifies its business model beyond passenger transport into military and logistics markets. The deal is expected to close following standard procedures, though a specific effective date was not reported. Future steps include the appointment of a Boeing-designated director to Archer’s board and the implementation of the reported technology-sharing protocols.