Boeing exits the air taxi business, sells Wisk, SkyGrid, and Insitu to Archer Aviation

Boeing has agreed to sell three of its advanced aviation subsidiaries to Archer Aviation while taking a 19.75% stake in the California-based electric air taxi developer. According to a regulatory filing, Boeing will also receive options to purchase additional Class A shares over the next four years. The deal includes autonomous aircraft developer Wisk Aero, urban air mobility software company SkyGrid, and drone manufacturer Insitu.

The acquisition significantly expands Archer's technology portfolio as the company races to launch commercial air taxi services. Boeing will retain access to Wisk's autonomous flight technology for its commercial and defense programs, while the two companies will also share technology.

Wisk Aero was founded in 2019 as a joint venture between Boeing and Kitty Hawk, the flying taxi startup backed by Google co-founder Larry Page. The company has developed six generations of autonomous eVTOL (electric vertical takeoff and landing) aircraft and completed more than 1,700 flight tests.

The deal also includes SkyGrid, which develops air traffic management systems for future urban air mobility networks, and Insitu, a Boeing subsidiary that manufactures long-endurance unmanned aircraft used by the U.S. military.

The transaction allows Boeing to sharpen its focus on its core commercial aircraft business as it works through an order backlog worth about $715 billion, representing more than 6,200 aircraft yet to be delivered.

For Archer, the acquisition comes as it prepares to launch pilot air taxi services in New York, Texas, and Florida before the end of the year. The company has also expanded into the defense sector, recently unveiling a military-focused eVTOL aircraft developed with Anduril Industries.

Boeing said the transaction will allow the acquired businesses to accelerate product development while enabling the aerospace giant to continue benefiting from technologies it has invested in over the past two decades. Archer CEO Adam Goldstein described the acquisition as "a watershed moment" that will help diversify the company's business and accelerate revenue growth.

The deal also marks the latest chapter in the relationship between Archer and Wisk. In 2021, Wisk sued Archer over alleged trade secret theft and patent infringement. The dispute was settled in 2023, with Wisk agreeing to become Archer's exclusive provider of autonomous flight technology.