WASHINGTON — Boeing agreed to sell three subsidiaries—Insitu, SkyGrid, and Wisk Aero—to Archer Aviation. The transaction is an all-stock deal in which Boeing will receive newly issued Archer shares.

Boeing will hold a nearly 16.5 percent stake in Archer Aviation following the completion of the deal. Archer Aviation filed a Form 8-K with the SEC on July 25, 2025, disclosing the terms of the agreement.

The acquisition brings together companies with distinct technological portfolios. Insitu manufactures uncrewed aircraft systems used in intelligence, surveillance, and reconnaissance. Its technology has been deployed by the armed forces of 35 nations, and the subsidiary generates more than $200 million in annual revenue.

SkyGrid develops air traffic management systems for automated airspace. Wisk Aero has designed and flown six generations of electric vertical takeoff and landing aircraft. The California electric aircraft manufacturer has logged more than 1,700 flight tests over 16 years.

Archer founder and CEO Adam Goldstein described the strategic shift. "This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business," Goldstein said. He called the deal a "watershed moment" for the company.

Boeing vice president of commercial airplanes product development Brian Yutko outlined the benefits for the seller. "This transaction is a win-win for Boeing and Archer. 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," Yutko said.

Under the agreement, Boeing will retain access to Wisk core autonomous flight technology for its current and next-generation commercial and defense aircraft. Boeing can nominate a director to Archer's board. The aerospace giant also has agreed to invest up to $55 million in Archer Aviation during an upcoming funding round. Boeing will be able to buy up to $200 million worth of additional Archer stock sold at a fixed price.

The deal is expected to close by the end of 2026 pending regulatory approval. Moelis & Company is serving as financial advisor to Archer Aviation. J.P. Morgan Securities is advising Boeing.

The transaction follows a period of legal conflict between the two entities. Wisk Aero was formed in 2019 as a joint venture between Boeing and Kitty Hawk. Wisk Aero sued Archer Aviation in April 2021 for alleged theft of confidential information and intellectual property. The lawsuit was filed in the United States District Court in the Northern District of California.

Archer Aviation and Wisk Aero settled their legal dispute in 2023. As part of the 2023 settlement, Archer agreed to use Wisk as the exclusive provider of autonomy technology for future variants of its aircraft. Boeing became the sole owner of Wisk Aero in 2023.

Kelly Ortberg became CEO of Boeing in August 2024. Since taking the role, Ortberg has prioritized divesting non-core company assets to focus on Boeing's commercial aircraft, defense, and space divisions.

Archer Aviation is headquartered in California. The company was founded in 2018 and went public in 2021 through a merger with a blank-check company. Archer is developing an all-electric aircraft called Midnight for civil applications. It is also developing a hybrid-electric aircraft called Thunder with Anduril.

Archer completed a piloted round-trip flight between Salinas Municipal Airport and Monterey Regional Airport earlier this month. The Federal Aviation Administration published a notice regarding the integration of powered-lift pilot certification and operations, listing Archer Aviation as a commenting manufacturer.

This acquisition consolidates key advanced air mobility and defense technologies under a single public entity. By acquiring Insitu, SkyGrid, and Wisk Aero, Archer Aviation gains established revenue streams and extensive flight-test data. Insitu alone contributes more than $200 million in annual revenue from defense contracts across 35 nations. Wisk Aero adds 16 years of autonomous flight testing and six generations of eVTOL design experience.

The deal transforms a former legal adversary into a primary technology partner and major shareholder. Boeing’s nearly 16.5 percent equity stake and board nomination rights create a long-term alignment between the two companies. The structure allows Boeing to capitalize on its historical investments in these subsidiaries while focusing its internal resources on core commercial and defense programs. For Archer, the transaction provides immediate scale and diversification beyond its current development of the Midnight and Thunder aircraft.

Why It Matters

The acquisition consolidates established revenue streams and advanced air mobility technologies under a single public entity, addressing previous legal disputes between the companies. Boeing retains access to critical autonomous flight technology for its core commercial and defense aircraft while shifting non-core assets to align with leadership priorities. The deal provides Archer Aviation with immediate scale and a diversified platform, while securing Boeing a significant equity stake and board representation in the emerging sector.