Boeing to sell three subsidiaries to eVTOL firm Archer

Boeing is set to sell three of its subsidiaries to Archer Aviation, a company based in San Jose, pending regulatory approval. The subsidiaries involved in the transaction are Wisk Aero, Insitu, and SkyGrid. Wisk Aero is recognized for its development of autonomous electric aircraft, Insitu manufactures high-altitude drones utilized by the US Navy, and SkyGrid specializes in air traffic management systems tailored for urban air taxis. The completion of this sale is anticipated by the end of the year. As part of the agreement, Boeing will acquire an undisclosed stake in Archer Aviation, and both companies will engage in technology sharing. This collaboration is expected to enhance Archer's operational capabilities in the electric vertical takeoff and landing (eVTOL) sector as well as in defense. The acquisition is viewed as a transformative move for Archer, transitioning it from a pre-revenue eVTOL startup to a company with a profitable defense business, which could significantly accelerate its eVTOL development plans. Following the announcement of the deal, Archer's stock experienced a notable increase of over 20%. The acquisition not only strengthens Archer's position in the air mobility market but also fosters innovation in urban air transportation solutions. Boeing will maintain access to Wisk's autonomous flight systems for its ongoing and future commercial and defense projects, further solidifying the partnership between the two companies.