Archer Aviation, a leading electric aircraft manufacturer, has completed a landmark acquisition of three Boeing subsidiaries – Wisk Aero, SkyGrid, and Insitu – totaling over $200 million in annual revenue. This strategic move represents a significant expansion for Archer’s business, dramatically bolstering its capabilities within the defense sector and diversifying its revenue streams. The acquisition is a pivotal moment for Archer, signaling a commitment to integrating Boeing’s decades of expertise in autonomous flight and defense technologies with the company’s existing electric aircraft development.
The three acquired businesses operated across 35 countries and collectively possessed nearly two million flight hours, representing a substantial asset base. Wisk Aero, formed in 2019 as a joint venture between Boeing and Kitty Hawk Corp., specializes in autonomous electric aircraft, with a focus on developing eVTOL air taxi systems. SkyGrid, established in 2019, focuses on managing increasingly automated airspace, including systems designed to coordinate aircraft and integrate autonomous vehicles into the broader aviation system. Insitu, founded in 1994, is a leading provider of uncrewed aircraft systems for intelligence, surveillance, and reconnaissance, with a history of manufacturing and deploying over 3,500 unmanned aircraft. Its portfolio includes small unmanned aircraft systems, vertical-takeoff-and-landing capabilities, and software designed to support military intelligence and surveillance operations, with offices in the U.S., Australia, the U.K., and the United Arab Emirates.
Archer Aviation, based in Mountain View, California, views this acquisition as a critical step toward becoming a diversified platform, rapidly growing its revenue base and expanding its scale through strategic integration of Boeing’s technologies. The transaction is expected to close by the end of 2026, subject to regulatory approvals and other closing conditions. Bingen, Wash.-based Insitu, a key defense perspective, will contribute its expertise in uncrewed aircraft systems, representing a substantial revenue stream and manufacturing capacity. The acquisition is also expected to create a new strategic partnership between Archer and Boeing, with Boeing owning 19.75% of Archer’s class A shares, with the option to buy more, and retaining access to Wisk’s core autonomous flight technology for use in Boeing’s current and future commercial and defense aircraft. Brian Yutko, Archer founder and CEO, stated that this transaction represents a ‘watershed moment’ for Archer and its ambitions to become a diversified platform, rapidly growing its revenue base and bringing scale to its business.
As part of the deal, Boeing will assume a stake in Archer and collaborate with Wisk, SkyGrid, and Insitu, creating a new strategic relationship. Boeing will own 19.75% for Archer’s class A shares, with the option to buy more, and retain access to Wisk’s core autonomous flight technology for use in Boeing’s current and future commercial and defense aircraft. Archer, based in Silicon Valley, is actively developing its Midnight electric air taxi, touted as a ‘new way to move through cities,’ and the transaction is expected to further expand Archer’s focus to defense applications and other aircraft technologies. Shares of Archer soared in Monday trading, increasing by over 7% following the announcement. The deal is anticipated to have a significant impact on the aviation industry, potentially accelerating the adoption of electric air taxis and reshaping the competitive landscape of the aerospace sector.
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Source: Tech
