Boeing has agreed to sell three of its subsidiaries to Archer Aviation in exchange for nearly a 20% stake in the eVTOL startup. The deal involves Boeing acquiring 19.75% of Archer’s Class A shares, with additional options to buy more shares over the next four years. This move is aligned with Boeing’s strategy under new CEO Kelly Ortberg to streamline its focus on commercial airplanes, defense, and space, shedding businesses outside these core areas.

The subsidiaries sold include Wisk Aero, which specializes in autonomous electric vertical takeoff and landing aircraft (eVTOLs), and SkyGrid, a company developing air traffic management systems for urban air mobility. Insitu, the third subsidiary, is a developer and manufacturer of high-altitude drones used globally, including by the U.S. Navy. Boeing believes the transaction will accelerate development and market entry for these technologies while allowing the company to capitalize on its prior investments.

For Archer, the acquisition significantly boosts its position in the growing eVTOL market by integrating autonomous aircraft capabilities from Wisk and vital air traffic management solutions from SkyGrid. Additionally, Insitu’s drone technology enhances Archer’s military portfolio. Archer CEO Adam Goldstein emphasized the move as a key step toward diversifying the company’s offerings, expanding revenues, and scaling the business rapidly as it aims to commence commercial eVTOL flights by late 2026 or early 2027.

This deal benefits both companies: Boeing sharpens its focus on its primary sectors while retaining exposure to promising eVTOL technology through its stake in Archer. Under Ortberg’s leadership, Boeing is prioritizing a leaner organization centered on profitability and growth in aerospace's main segments. Meanwhile, Archer gains critical assets and expertise to accelerate its efforts in urban air mobility and defense markets.