Archer To Acquire Boeing Autonomous Flight And Drone Subsidiaries

Boeing and Archer Aviation have announced the companies have signed definitive agreements in which Archer will acquire Boeing's Wisk Aero, SkyGrid and Insitu subsidiaries.

The acquisitions, including the drone maker Insitu and airspace-services provider SkyGrid, give Archer access to Boeing's autonomous-flight technology, potentially bolstering its position in defense and commercial logistics. Archer shares rose about 14% in morning trading, Reuters reported.

It marks Boeing's latest effort to streamline its portfolio and sharpen its focus on its core commercial and defense aircraft businesses, while stepping back from its air-taxi ambitions. Boeing CEO Kelly Ortberg has said the manufacturer needs to focus on its core commercial airplanes, defense and space operations.

Boeing said Wisk, SkyGrid and Insitu have pioneered and incubated core autonomous flight technologies for the future that, in combination with Archer's air taxi, UAS and AI technologies, will bring new and innovative solutions to the market.

These companies, with nearly two million combined flight hours, are expected to bring a deep autonomy foundation to Archer's ZEE artificial intelligence platform. This positions Archer to deliver an end-to-end physical AI platform across commercial aerospace, defense and air traffic management that can lead the next generation of aviation.

Archer's Founder and CEO, Adam Goldstein said, "This is a watershed moment for Archer and the future of physical AI in aerospace and defense. This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."

In conjunction with the transaction, Boeing and Archer are entering into a collaboration and technology-sharing arrangement through which Boeing will retain access to the Wisk core autonomous flight technology for its current and next-generation commercial and defense aircraft. The transaction allows Boeing to retain strategic upside through its stake in Archer and simultaneously focus current and future investments into Boeing's core businesses.

"This transaction is a win-win for Boeing and Archer," said Brian Yutko, Boeing vice president, Commercial Airplanes Product Development. "It 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. Having worked with the incredible teams in these companies firsthand, it's clear this transaction will create an industry leader in the advanced aviation market. We look forward to collaborating with Archer to drive continued innovation in aerospace, defense and autonomy."