Boeing sells eVTOL subsidiaries to Archer Aviation for 19.75% stake

Boeing is selling three of its subsidiaries to Archer Aviation in exchange for a stake in the electric vertical take-off and landing (eVTOL) startup, as the aerospace giant sharpens its focus on core operations.

The transaction strengthens Archer's position in developing eVTOL aircraft and the supporting infrastructure, while also helping the company expand its military portfolio.

Deal Details

Boeing's stake in Archer will amount to 19.75% of Class A shares, with options to purchase additional shares over the next four years, according to a regulatory filing.

Shares of Archer gained nearly 12% on Monday following the announcement.

Subsidiaries Sold

The three Boeing subsidiaries being transferred to Archer are:

• Wisk Aero – Developer of an autonomous eVTOL aircraft
• SkyGrid – Developer of air traffic management systems for air taxis, supporting the transition of urban air mobility from test flights to commercial operations
• Insitu – Manufacturer of high-altitude drones used globally, including by the U.S. Navy

Strategic Rationale

Brian Yutko, Boeing vice president of commercial airplanes product development, said the deal "allows Wisk, SkyGrid and Insitu to accelerate capability development and time to market while ensuring Boeing capitalizes on its investments in these technologies over the past two decades through continued development in our core businesses."

For Archer, the acquisition strengthens its eVTOL development and network capabilities. Insitu also extends Archer's military portfolio.

Adam Goldstein, CEO of Archer, said: "This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."

Boeing's Focus on Core Operations

Since taking over as CEO in August 2024, Kelly Ortberg has repeatedly emphasized that Boeing needs to focus on improving its three primary businesses: commercial airplanes, defense, and space operations.

Just months after becoming CEO, Ortberg made clear that Boeing's path to profitability would require streamlining the aerospace giant.

"We need to reset priorities and create a leaner, more focused organization," he said in October 2024.

Archer's Commercial Timeline

Archer is targeting commercial eVTOL flights by the end of this year or early next year and is working to establish itself as urban air taxis begin operations across the U.S.

By acquiring Wisk and SkyGrid, Archer solidifies its portfolio, particularly with the autonomous eVTOL technology that Wisk has been developing.

Both companies stand to benefit from the deal as Archer accelerates toward commercial operations and Boeing streamlines its business structure.