Archer Aviation Acquires Boeing's Autonomous Aerospace Subsidiaries for $55M

Archer Aviation, an electric vertical take-off and landing (eVTOL) flying taxi startup, has made a major acquisition in the advanced air mobility sector. The company has signed definitive agreements to absorb three of Boeing's autonomous aerospace subsidiaries: Wisk Aero, Insitu, and SkyGrid.

The deal, which was announced on Monday, marks a significant shift for Archer Aviation as it transforms from a cash-burning startup into a defense-capable, multi-revenue aerospace platform. In exchange for equity, board access, and a $55 million investment commitment from Boeing, Archer will take control of the three subsidiaries.

Boeing, which is taking a roughly 19.75% stake in Archer's Class A shares plus warrants to purchase additional shares over the next four years, gets to exit the direct management of its innovation-era subsidiaries while retaining access to Wisk's core autonomous flight technology through cross-licensing agreements.

Insitu, which generates more than $200 million in annual revenue, gives Archer an active defense business with ongoing US government contracts and international sales relationships. This marks a significant pivot for the company as it explores a defense market entry that typically takes defense startups five to ten years to achieve.