Archer Aviation Inks $5 Billion Deal with Boeing, Acquiring Wisk Aero and SkyGrid

Archer Aviation has agreed to acquire three Boeing subsidiaries in an all-stock transaction that transforms a bitter legal rivalry into one of the most consequential partnerships in the emerging electric-aviation sector. The deal, announced August 10th, sent Archer shares up roughly 20% on the news and extends a month-long rally that has lifted the stock 45%. Archer gains Wisk Aero, an autonomous eVTOL developer; SkyGrid, a digital airspace and air-traffic-management software firm; and Insitu, a drone producer with annual revenue exceeding $200 million across 35 countries. Boeing will receive newly issued Archer Class A shares equal to 19.75% of the company's outstanding stock immediately prior to closing.

Boeing CEO Kelly Ortberg initiated this portfolio-slimming campaign in August 2024, and last year, Boeing sold Jeppesen, a flight planning service, and related digital aviation units to private equity firm Thoma Bravo for $10.55 billion. Offloading Wisk, SkyGrid, and Insitu allows Boeing to shift focus away from non-core businesses while retaining exposure to the technologies through its equity stake and intellectual-property cross-license.

Archer CEO Adam Goldstein called the transaction 'a watershed moment for Archer and the future of physical AI in aerospace and defense.' With this acquisition, Archer now faces the challenge of integrating three businesses with distinct cultures and customer bases while continuing to pursue Federal Aviation Administration certification for its commercial aircraft.