Archer Aviation Acquires Former Rival Wisk Aero

Archer Aviation has agreed to acquire former rival Wisk Aero and two other Boeing subsidiaries, bringing additional electric aviation, autonomous aircraft and airspace-management assets into its business. Boeing will receive newly issued Archer shares in the transaction, resulting in an estimated 16.5% ownership stake after closing.

Key Takeaways

• Archer Aviation is acquiring Wisk Aero from Boeing along with SkyGrid and Insitu.
• Boeing will receive newly issued Archer shares representing about 16.5% of the company after closing.
• Wisk and Archer previously faced a two-year legal dispute over alleged intellectual property theft.
• A 2023 settlement ended the litigation and established a collaboration between the two companies.
• Archer has expanded its business beyond passenger air taxis to include autonomous aviation and defense-related aircraft.
  

Archer Aviation is set to acquire Wisk Aero from Boeing in a transaction that brings the two electric aircraft companies together after years of competition and a previous legal dispute. The deal also includes SkyGrid, a digital airspace and air traffic management software company, and drone maker Insitu.

Under the terms of the transaction, Boeing will sell Wisk and the two other subsidiaries to Archer in exchange for newly issued Archer shares. The shares will equal 19.75% of Archer’s shares outstanding immediately before the transaction closes.

Following the deal, Boeing is expected to hold approximately 16.5% of Archer. The transaction therefore gives Boeing a significant minority position in a company that is continuing to develop electric vertical takeoff and landing aircraft.

The acquisition combines businesses working across several areas of aviation technology. Wisk is developing autonomous electric aircraft, while SkyGrid focuses on digital airspace and air traffic management software. Insitu develops unmanned aircraft.

For Archer, the transaction adds Wisk’s aircraft development work and autonomous aviation capabilities to its existing operations. The acquisition also changes the relationship between two companies that previously competed directly in the electric aircraft market.

Archer was founded in California in 2018 and has developed an electric vertical takeoff and landing aircraft program centered on passenger transportation. The company has also expanded into defense-related aircraft and autonomous aviation.

The transaction adds to a market that includes other companies developing flying vehicles and autonomous mobility systems. 

Boeing’s Ownership Following the Deal

Boeing’s new Archer stake will result from the issuance of additional Archer shares rather than a direct cash purchase described in the transaction terms. The resulting ownership position gives Boeing a continuing interest in Archer after transferring the three businesses.

The transaction also places three businesses with different aviation capabilities under one corporate structure. Wisk brings autonomous electric aircraft development, SkyGrid contributes airspace-management software, and Insitu adds unmanned aircraft capabilities.

Boeing’s resulting ownership stake will be approximately 16.5% after the transaction closes, according to the terms described in the deal.

Boeing Receives Minority Stake in Archer

Boeing’s involvement in Wisk dates to the company’s development as an electric aviation venture. Wisk originated from Kittyhawk, an electric aviation startup associated with Sebastian Thrun and backed by Google co-founder Larry Page.

Kittyhawk shut down in September 2022, but its Cora aircraft program continued through a joint venture with Boeing. The Cora program had been spun off into the venture in late 2019.

The joint venture was later renamed Wisk. The company pursued the development and commercialization of electric, self-flying air taxis.

Boeing subsequently increased its financial involvement in Wisk. In early 2022, Boeing invested $450 million in the company. By 2023, Wisk had become a wholly owned Boeing subsidiary.

The current transaction transfers ownership of Wisk from Boeing to Archer while giving Boeing an equity position in Archer.

The arrangement also places three businesses with different aviation capabilities under one corporate structure. Wisk brings autonomous electric aircraft development, SkyGrid contributes digital airspace management technology, and Insitu adds unmanned aircraft capabilities.

The structure resembles other recent corporate deals such as Uber’s Blacklane acquisition, in which established businesses have used acquisitions to expand into adjacent capabilities. 

SkyGrid and Insitu Join the Transaction

Wisk is not the only Boeing business included in Archer’s acquisition. SkyGrid and Insitu are also part of the transaction, expanding the scope beyond electric passenger aircraft.

SkyGrid develops digital airspace and air traffic management software. Its business is focused on systems used to manage and coordinate aircraft operating within increasingly complex airspace environments.

Insitu is a drone manufacturer and another Boeing subsidiary included in the deal. Its addition gives Archer an unmanned aircraft business alongside its electric and autonomous aviation assets.

The three businesses provide Archer with capabilities across aircraft development, autonomous systems, digital airspace management and unmanned aviation.

The transaction consequently involves more than the combination of two electric aircraft developers. It transfers a group of aviation-related businesses from Boeing to Archer while establishing Boeing as a minority shareholder in Archer.

The deal also gives Archer access to Wisk’s work on autonomous aircraft. Under an earlier settlement between Archer and Wisk, Wisk had agreed to become the exclusive provider of autonomous technology for Archer.

That previous arrangement provides direct context for the inclusion of Wisk in Archer’s business. The companies had already established a commercial relationship before the acquisition.

Acquisitions can also bring technology and operating capabilities into an existing company rather than requiring those capabilities to be developed independently. A separate KivoDaily report on MoEngage’s first acquisition describes a similar transaction in which an established technology company added an AI startup and its technology through an acquisition.

Archer and Wisk Move Beyond Their Legal Dispute

Archer and Wisk previously engaged in a legal dispute over intellectual property. In April 2021, Wisk sued Archer, alleging theft of confidential information and intellectual property.

Archer subsequently filed a counter-suit against Wisk seeking $1 billion in damages. The legal dispute continued for two years before the companies reached a settlement in 2023.

The settlement ended both sides’ litigation and established a new collaboration between the companies. As part of the agreement, Archer agreed to make Wisk the exclusive provider of autonomous technology.

Archer also agreed to give Wisk an option to purchase up to 13,176,636 shares of Archer common stock at $0.01 per share.

The settlement represented a change in the relationship between the two electric aircraft companies. Instead of continuing their court dispute, the companies established a business arrangement involving Wisk’s autonomous aviation technology.

The current acquisition takes that relationship further by placing Wisk under Archer’s ownership.

Wisk’s development also traces back to Kittyhawk and its Cora aircraft. Cora was designed as a two-person autonomous flying taxi and became the foundation of Wisk’s electric self-flying aircraft program.

The transition from Kittyhawk to Wisk preserved the Cora program after Kittyhawk shut down. Boeing subsequently became the sole owner of Wisk before agreeing to sell the company to Archer.

The transaction illustrates a corporate outcome in which a previously independent startup relationship eventually developed into a full acquisition. 

Archer Expands Its Electric Aircraft Business

Archer’s acquisition of Wisk adds to a business that already extends beyond its original passenger air taxi plans. The company continues to develop its all-electric Midnight aircraft while pursuing additional aviation applications.

The Midnight aircraft is part of Archer’s effort to develop electric vertical takeoff and landing aircraft for passenger transportation. The company has also expanded into defense-related aircraft.

Archer launched its Archer Defense program and raised $430 million in December 2024 to support the effort. The company later raised another $300 million in 2025 from institutional investors.

Archer also entered an exclusive agreement with Anduril to jointly develop a hybrid gas-and-electric vertical takeoff and landing aircraft for defense applications.

The company’s expansion into defense gives its aircraft development work an additional application beyond passenger air transportation.

Archer became a publicly traded company in 2021 through a merger with a special purpose acquisition company. Its current business includes the development of electric aircraft and related aviation technologies.

The company has continued testing its Midnight aircraft as it prepares for operations under the White House’s eVTOL Integration Pilot Program.

The acquisition of Wisk adds another autonomous aircraft development program to that portfolio. SkyGrid adds digital airspace-management technology, while Insitu adds unmanned aircraft capabilities.

The transaction therefore brings together several aviation technology businesses within Archer while giving Boeing a continuing minority ownership position in Archer.

Wisk’s Development From Kittyhawk

Wisk’s history began with Kittyhawk, the electric aviation startup led by Sebastian Thrun and backed by Larry Page. Kittyhawk developed several aircraft concepts, including the single-seat Flyer and the autonomous Heaviside aircraft.

The Cora program became the company’s most significant continuing aircraft project. Cora was spun off into a joint venture with Boeing in late 2019, creating the business that became Wisk.

Wisk then focused on developing and commercializing electric, self-flying air taxis. Boeing provided additional capital and eventually became Wisk’s sole owner.

The Archer transaction moves Wisk into a new corporate structure while retaining its connection to autonomous electric aviation.

The acquisition also brings the former competitors together under Archer after their earlier dispute was resolved through a settlement and subsequent collaboration.

Archer’s Midnight Aircraft Program

Archer’s Midnight aircraft remains a central part of its electric aircraft business. The company has been developing the aircraft as an all-electric eVTOL vehicle for passenger transportation.

The acquisition does not replace Archer’s existing aircraft program. Instead, it adds Wisk’s autonomous aviation capabilities and the other acquired businesses to Archer’s portfolio.

The combined assets span electric aircraft, autonomous flight, airspace-management software and unmanned aircraft.

The transaction also changes the ownership structure surrounding those businesses. Boeing will no longer own Wisk directly after the deal closes but will retain an approximately 16.5% stake in Archer.

Frequently Asked Questions

What is Archer Aviation acquiring from Boeing?

Archer Aviation is acquiring Wisk Aero, SkyGrid and Insitu from Boeing.

What stake will Boeing hold in Archer Aviation?

Boeing is expected to hold approximately 16.5% of Archer after the transaction closes.

What is Wisk Aero’s connection to Boeing?

Wisk developed from a joint venture between Boeing and Kittyhawk’s Cora program and became a wholly owned Boeing subsidiary by 2023.

Did Archer Aviation and Wisk Aero previously face a legal dispute?

Yes. Wisk sued Archer in 2021 over alleged theft of confidential information and intellectual property. The companies settled their litigation in 2023 and established a collaboration.

What aircraft is Archer Aviation developing?

Archer is developing its all-electric Midnight aircraft as part of its electric vertical takeoff and landing aircraft business.