Boeing and Archer Aviation announced Monday that they have signed definitive agreements under which Archer will acquire three of Boeing's subsidiaries—Wisk Aero, SkyGrid, and Insitu—in a deal the companies say will create an "end-to-end physical AI platform" for aerospace and defense.

The agreement, announced August 10, brings together capabilities the two firms have built over decades in autonomy, electric vertical takeoff and landing (eVTOL) aircraft, and unmanned aircraft systems.

Wisk, SkyGrid, and Insitu together have amassed nearly two million combined flight hours, according to the companies. Their autonomous flight technologies are expected to feed into Archer's ZEE artificial intelligence platform, positioning the combined business across commercial aerospace, defense and air traffic management.

The deal also adds a defense unit generating more than $200 million in annual revenue, with operations spanning 35 countries, to Archer's portfolio.

"This is a watershed moment for Archer and the future of physical AI in aerospace and defense," said Archer Founder and CEO Adam Goldstein. "This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."

As part of the arrangement, Boeing will take a stake in Archer and become a strategic partner, with the two companies establishing an ongoing collaboration and technology-sharing agreement. Boeing will retain access to Wisk's core autonomous flight technology for use in its current and future commercial and defense aircraft.

"This transaction is a win-win for Boeing and Archer," said Brian Yutko, Boeing vice president for Commercial Airplanes Product Development. He said the deal would let Wisk, SkyGrid, and Insitu accelerate development while allowing Boeing to capitalize on nearly two decades of investment in the technologies through its continued core businesses. Yutko added that Boeing looks forward to collaborating with Archer on innovation in aerospace, defense and autonomy.

About the units changing hands

Wisk has designed, built, and flown six generations of eVTOL aircraft and conducted more than 1,700 flight tests over 16 years, developing autonomy capabilities built around a flight-control computer, sensor suite, and radar system for civil and defense certification.

SkyGrid has developed a ground-based, aircraft-agnostic system for managing air traffic that supports automated airspace integration.

Insitu designs and manufactures uncrewed aircraft systems for intelligence, surveillance, and reconnaissance and says its technology has supported armed forces in 35 nations. The company has manufactured and fielded more than 3,500 UAS from offices in the United States, Australia, the United Kingdom, and the United Arab Emirates.

Archer filed a Form 8-K with the U.S. Securities and Exchange Commission that outlines further details of the transaction. The deal is subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close by the end of 2026.

Moelis & Company is serving as financial advisor to Archer, with Fenwick & West as outside counsel. J.P. Morgan Securities is advising Boeing, with Mayer Brown as outside counsel.

Source: Boeing