WASHINGTON — Boeing has agreed to sell three subsidiaries to electric‑aircraft developer Archer Aviation in an all‑stock transaction and will become a strategic partner in the startup, the companies announced today.
Under the agreements, Boeing will transfer ownership of its drone unit Insitu, its air‑traffic‑management firm SkyGrid and electric‑aircraft maker Wisk Aero—a former rival of Archer—to Archer in exchange for an approximately 16.5 % stake in the company, according to the New York Times.
Brian Yutko, Boeing’s vice president for commercial airplanes product development, described the transaction as a win‑win for both companies.
The agreement will enable Wisk, SkyGrid and Insitu to accelerate capability development and bring products to market faster, while allowing Boeing to capitalize on its two‑decade investments in these technologies through continued growth in its core businesses, Yutko said in the release.
Archer’s founder and CEO, Adam Goldstein, called the deal a watershed moment for the company and the next major step toward becoming a diversified platform, according to the release.
The transaction, expected to close by year‑end pending regulatory approval, reshapes the autonomous eVTOL market and deepens Archer’s defense capabilities. The combined expertise of the three subsidiaries will also be leveraged to enhance Archer’s AI platform, ZEE, the release noted.
Insitu produces small military drones such as the Scan Eagle and has sold its technology to the armed forces of 35 countries, the release said. The deal follows Archer’s recent partnership with defense technology startup Anduril to develop a loyal wingman drone for helicopters.
Boeing CEO Kelly Ortberg has focused on shedding non‑core assets to rebalance the embattled aerospace giant and raise cash. As part of the agreement, Boeing will take a stake in Archer, invest up to $55 million in a forthcoming funding round and retain the right to purchase up to $200 million of additional shares at a fixed price, according to Air Current.
The transaction includes a technology‑sharing arrangement under which Boeing will retain access to Wisk’s core autonomous‑flight technology for its current and next‑generation commercial and defense aircraft. Archer had previously agreed to use Wisk as its exclusive autonomy provider for future aircraft variants as part of a 2023 settlement with Boeing, the release noted.
In addition to the hybrid‑electric Thunder aircraft it is developing with Anduril, Archer is advancing its all‑electric Midnight aircraft for civil use. Although the eVTOL sector initially generated excitement, it has faced regulatory and developmental hurdles that have delayed market entry. Consequently, many eVTOL firms have shifted focus toward defense applications, leveraging hybrid‑electric powertrains for enhanced performance.
