Flying taxi maker Archer buys 3 Boeing units in major eVTOL, AI deal

Dubai: Flying taxi maker Archer Aviation is buying three Boeing subsidiaries in a deal that will combine electric aircraft, autonomous flight and defence technologies and give Archer a business generating more than $200 million in annual revenue.

Archer is acquiring Boeing's Wisk Aero, Insitu and SkyGrid businesses in exchange for equity, with Boeing taking a stake of nearly 20 per cent in Archer, Reuters has reported..

The transaction remains subject to closing conditions, including the expiry or termination of the waiting period required under US antitrust law. Archer and Boeing expect the deal to close by the end of 2026.

The acquisition gives Archer businesses spanning autonomous aircraft, unmanned systems, airspace management and AI, while Boeing will retain access to key autonomous flight technology and take a stake in Archer.

The deal brings together Wisk's autonomous electric vertical take-off and landing (eVTOL) technology, Insitu's unmanned aircraft systems and SkyGrid's air traffic management software with Archer's air taxi and artificial intelligence technologies.

The deal marks the sale of businesses Boeing has spent years developing and acquiring. Boeing bought Insitu in 2008, while Wisk became a wholly owned Boeing subsidiary in 2023. SkyGrid was launched as a Boeing-SparkCognition joint venture in 2018.

For Archer, thie transaction will create an end-to-end platform covering aerospace, defence and air traffic management.

The three Boeing businesses have nearly two million combined flight hours, according to the companies.

Archer Founder and CEO Adam Goldstein called the transaction a “watershed moment for Archer and the future of physical AI in aerospace and defense”, adding that it would help the company diversify its business and expand its revenue base.

Boeing to invest in Archer

Boeing will retain access to Wisk's core autonomous flight technology under a new collaboration and technology-sharing agreement.

Boeing will also take a stake in Archer, giving it continued exposure to the businesses being transferred while allowing it to focus its investments on its core operations.

“This transaction is a win-win for Boeing and Archer,” said Brian Yutko, Boeing vice president, Commercial Airplanes Product Development.

He said the deal would allow Wisk, SkyGrid and Insitu to accelerate capability development and time to market while allowing Boeing to benefit from its previous investments in the technologies.

Archer adds defence business

The acquisition will significantly expand Archer's presence beyond the air taxi market.

Insitu designs, develops and manufactures uncrewed aircraft systems used for intelligence, surveillance and reconnaissance. Its products include vertical take-off and landing-capable unmanned aircraft and AI-enabled software.

Insitu's technologies have been used by the armed forces of 35 nations, according to the release. The company has manufactured and deployed more than 3,500 unmanned aircraft systems.

Insitu has offices in the US, Australia, the UK and the UAE, with operations and support networks across the globe.

The business generates more than $200 million in annual revenue, according to Archer and Boeing.

Wisk has developed autonomous eVTOL aircraft and has designed, built and flown six generations of the aircraft, completing more than 1,700 flight tests.

The company has spent 16 years developing autonomous flight systems, including flight-control computers, sensors and radar systems designed for civil and potential defence applications.

SkyGrid, meanwhile, develops ground-based air traffic management technology designed to support automated aircraft and the future integration of autonomous aviation into shared airspace.