● Covered by 3 sources · 3 reportsMedium impact3 neutral
Boeing Sells eVTOL Subsidiaries to Archer Aviation for 16.5% Stake
Key points
- Boeing sold Wisk Aero, SkyGrid, and Insitu to Archer Aviation.
- Boeing received a 16.5% stake in Archer Aviation.
- Wisk Aero develops autonomous eVTOL aircraft.
- SkyGrid develops air traffic management systems.
- Insitu manufactures high-altitude drones.
Boeing Divests eVTOL Assets
Boeing has completed the sale of three subsidiaries—Wisk Aero, SkyGrid, and Insitu—to Archer Aviation. This move is part of Boeing's strategy to increase its focus on core operations, particularly its commercial airplane business.
In return for the subsidiaries, Boeing received newly issued Archer shares, amounting to approximately a 16.5% stake in the company after the deal's closing. The financial terms of the acquisition for the subsidiaries were not disclosed.
Strengthening Archer's Position
For Archer Aviation, the acquisition strengthens its presence in the electric vertical takeoff and landing (eVTOL) aircraft market and related support networks. The acquired companies bring diverse capabilities to Archer's portfolio.
Wisk Aero has been developing autonomous eVTOL aircraft, while SkyGrid focuses on air traffic management systems for urban air mobility. Insitu manufactures high-altitude drones, including those used by the U.S. Navy, which also extends Archer's military portfolio.
Background on Wisk Aero
The acquisition of Wisk Aero by Archer marks a significant development following a prior trade secret lawsuit between the two companies. In April 2021, Wisk sued Archer, alleging theft of confidential information and intellectual property. The lawsuit concluded after two years with a settlement that also initiated a collaboration between the companies.
Technology Sharing and Future Access
As part of the agreement, Boeing and Archer will engage in technology sharing. Boeing will also retain access to Wisk's autonomous flight systems for its current and future commercial and defense projects. This arrangement allows Wisk, SkyGrid, and Insitu to accelerate their development and market entry, while Boeing capitalizes on its past investments in these technologies.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Archer Aviation has acquired Wisk Aero, SkyGrid, and Insitu from Boeing in exchange for an ownership stake in Archer. This acquisition follows a prior trade secret lawsuit settlement between Archer and Wisk, consolidating efforts in electric vertical takeoff and landing (eVTOL) aircraft development.
Boeing is selling three of its electric vertical takeoff and landing (eVTOL) subsidiaries, including Wisk Aero, SkyGrid, and Insitu, to Archer Aviation and will also acquire an undisclosed stake in Archer. This deal allows Boeing to refocus on its core commercial airplane business while bolstering Archer's position in the eVTOL market.
Boeing sold its Wisk Aero, SkyGrid, and Insitu subsidiaries to Archer Aviation in exchange for an undisclosed stake in Archer. This move allows Boeing to focus on its core operations while strengthening Archer's position in the eVTOL and urban air mobility market.