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Archer Aviation Acquires Wisk Aero, Insitu, and SkyGrid from Boeing

Archer Aviation acquires three Boeing subsidiaries in an all-stock deal, adding $200M+ in annual defense revenue to its eVTOL portfolio.

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Archer Aviation Inc. has reached a definitive agreement to acquire three Boeing subsidiaries in an all-stock transaction that transitions the electric vertical takeoff and landing (eVTOL) developer into a diversified aerospace and defense contractor. The acquisition of Wisk Aero, Insitu, and SkyGrid integrates established autonomous flight, air traffic management, and uncrewed aerial systems (UAS) into Archer’s portfolio.

Announced in a joint press release on August 10, 2026, the deal includes a strategic investment from The Boeing Company. In conjunction with the sale, Boeing will receive an equity stake in Archer, invest additional capital in an upcoming funding round, and enter into a cross-licensing agreement to retain access to Wisk’s autonomous flight technology for its commercial and defense platforms.

Financial terms and Boeing’s strategic shift

According to reporting by The Air Current, Boeing has agreed to invest up to $55 million in an upcoming Archer funding round and will receive up to $200 million in warrants to purchase Archer stock in the future. The outlet reported that the all-stock transaction is expected to make Boeing the largest outside shareholder in Archer.

For Boeing, the divestment aligns with a broader corporate strategy to shed non-core assets and refocus on its primary commercial and defense operations. By securing cross-licensing rights, Boeing retains the technological benefits of Wisk’s autonomous development for future aircraft, including a potential Boeing 737 successor, without carrying the operational overhead of the subsidiaries.

Brian Yutko, Vice President of Commercial Airplanes Product Development at Boeing and former CEO of Wisk Aero, framed the deal as mutually beneficial. According to The Air Current, Yutko stated that Boeing can now take the developed technologies and intellectual property and focus them back on core Boeing products and business priorities.

Archer’s expansion into defense and physical AI

The acquisition fundamentally alters Archer’s market position. Prior to the agreement, Archer operated primarily as a pre-revenue eVTOL developer focused on its Midnight aircraft. The integration of Insitu brings an established defense business that generates over $200 million in annual revenue and operates across 35 countries, according to the joint press release.

Archer plans to integrate the technologies from Wisk, SkyGrid, and Insitu into its proprietary artificial intelligence foundation platform, known as ZEE. The combined entities bring nearly 2 million flight hours of data to Archer’s development programs.

“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,” said Adam Goldstein, Founder and CEO of Archer Aviation.

The Air Current noted that acquiring Wisk provides Archer with a ready source of engineering talent as the company accelerates development of a hybrid-electric loyal wingman drone in partnership with Anduril Industries.

Resolving a complex corporate history

The acquisition marks the culmination of a complicated relationship between Archer, Wisk, and Boeing. In 2021, Wisk filed a lawsuit against Archer alleging trade secret theft. The legal dispute was resolved on August 10, 2023, when the companies reached a settlement that included Boeing making an investment in Archer and the establishment of an autonomous flight collaboration. Exactly three years after that settlement, Archer is absorbing its former rival.

AirPro News analysis

We view this transaction as a major consolidation event in the advanced air mobility sector. For Archer, acquiring revenue-generating defense assets like Insitu provides a critical financial bridge while its commercial eVTOL operations await certification and scale. The integration of Wisk’s autonomous technology and SkyGrid’s airspace management software positions Archer to offer a comprehensive ecosystem rather than just an airframe. For Boeing, the deal represents a pragmatic offloading of capital-intensive research and development subsidiaries. By retaining a significant equity stake and cross-licensing rights, Boeing maintains a foothold in the autonomous and eVTOL markets while freeing up resources to address its core manufacturing and supply chain challenges.

Sources: The Boeing Company / Archer Aviation Inc.

Photo Credit: Archer Aviation

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Defense & Military

South Korea Delivers First Production KF-21 Boramae to ROKAF

South Korea’s first mass-produced KF-21 Boramae Block I was delivered to the ROKAF on September 22, 2026.

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South Korea’s indigenous fighter program transitioned from development to operational service on September 22, 2026, with the delivery of the first mass-produced KF-21 Boramae Block I to the Republic of Korea Air Forces (ROKAF).

The milestone, announced in a joint press release by ROKAF and the Defense Acquisition Program Administration (DAPA), culminates a 25-year effort to field a domestically developed advanced fighter. Aircraft No. 001 was flown from the Korea Aerospace Industries (KAI) manufacturing plant in Sacheon to Yecheon Air Base in North Gyeongsang Province.

Delivery and escort flight

The inaugural operational sortie was piloted by Maj. Han Jae-seok of the 156th Fighter Squadron. During the transit flight, the KF-21 was escorted by an FA-50 light attack aircraft, a TA-50 fighter trainer, and a T-50 Golden Eagle jet trainer. According to Yonhap News Agency, this formation was designed to symbolize the generational progression of South Korea’s indigenous military-aircraft aviation industry.

ROKAF Chief of Staff Gen. Son Sug-rag emphasized the significance of the handover, describing the delivery as a historic milestone in achieving self-reliant national defense.

Overcoming numerous trials and hardships, the KF-21 was handed over to the Air Force today and commenced flight operations. Up until yesterday was the time for the Boramae project’s policymakers and developers. From today onward, it is the Air Force’s time.

Fleet integration and production timeline

The aircraft will be operated by the 156th Fighter Squadron, which ROKAF reactivated on June 1, 2026. The squadron previously operated F-4E Phantom II fighters before being disbanded in 2012, according to reporting by Janes.

DAPA awarded KAI a $1.4 billion contract in June 2024 to begin production of the first 20 Block I jets. Breaking Defense reports that ROKAF expects delivery of 40 Block I aircraft by 2028, followed by 80 Block II aircraft by 2032, bringing the total planned KF-21 fleet to 120 airframes. The platform is expected to be declared fully combat operational in the second half of 2027.

Development and testing milestones

South Korea first announced plans to develop an indigenous advanced fighter in March 2001. Full-scale system development formally began in December 2015, and KAI rolled out the first prototype in April 2021.

Before achieving combat suitability certification on May 7, 2026, the KF-21 program completed 1,600 flight tests covering 13,000 test conditions, according to AeroMorning. The transition to mass production was authorized in June 2024 following the successful completion of these initial testing phases.

AirPro News analysis

We view the delivery of the first production KF-21 as a critical step in South Korea’s broader strategy to reduce reliance on foreign defense contractors and modernize its tactical air fleet. The Boramae will replace the ROKAF’s aging fleets of F-4E Phantom II and F-5 fighters, providing a bridge between fourth-generation platforms and the fifth-generation F-35.

While minor discrepancies exist in open-source reporting regarding the specific tail number painted on the first jet, with sources citing both 26-001 and 25-001, all official documentation confirms this airframe as production aircraft No. 001. The successful transition from prototype to production within five years of rollout demonstrates significant maturation in KAI’s manufacturing capabilities and sets a firm foundation for the planned Block II upgrades.

Sources: Republic of Korea Air Force

Photo Credit: Republic of Korea Air Force

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Defense & Military

Canada Signs Term Sheet With Saab for Six GlobalEye Aircraft

Canada and Saab signed a non-binding term sheet for six GlobalEye AEW&C aircraft to support RCAF NORAD commitments.

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Saab and the Canadian Defence Investment Agency (DIA) signed a non-binding term sheet on September 25, 2026, establishing the framework for Canada’s potential acquisition of six GlobalEye Airborne Early Warning and Control (AEW&C) aircraft.

Announced via official statements from both the manufacturers and the Canadian government, the agreement advances Canada’s ongoing effort to modernize its continental defense and Arctic surveillance capabilities. The signing follows a May 27, 2026, announcement by Prime Minister Mark Carney designating Saab as the preferred supplier for the Royal Canadian Air Force (RCAF) AEW&C program.

Modernizing North American defense

The RCAF intends to utilize the GlobalEye fleet to fulfill its commitments to the North American Aerospace Defense Command (NORAD) and enhance domain awareness over Canada’s northern approaches. The AEW&C platform provides long-range detection and tracking of airborne, maritime, and surface targets, replacing legacy systems with modern sensor fusion capabilities.

“An Airborne Early Warning and Control capability will significantly strengthen Canada’s ability to detect, track, and respond to threats to our territory and approaches,” stated Lieutenant-General Jamie Speiser-Blanchet, Commander of the RCAF. “Beyond the capability itself, AEWC is about building the future Air and Space Force that Canada requires in an increasingly complex security environment.”

The procurement falls under Canada’s broader initiative to rebuild its military infrastructure and tighten security integration with European and North American allies.

Domestic industrial strategy

A central component of the procurement negotiations involves the aircraft’s underlying platform. The Saab GlobalEye is built upon the Bombardier Global 6500, an ultra-long-range business jet manufactured in Montreal, Canada. The Canadian government plans to leverage this domestic production line to secure long-term economic benefits and establish a local center for future missionization and support work.

The acquisition aligns with Canada’s Defence Industrial Strategy, which prioritizes purchasing proven systems from allied nations while mandating domestic industrial participation. Canadian Defense Minister David McGuinty described the term sheet as a tangible step toward equipping the RCAF with modern operational capabilities required for future deployments.

AirPro News analysis

While the term sheet represents concrete progress, we note a distinct difference in messaging between the negotiating parties. The Canadian government’s official communications heavily emphasize the domestic production of the Bombardier Global 6500 and the intent to perform missionization work within Canada. Conversely, Saab’s official statements remain circumspect, referring only broadly to “industrial participation” as a subject for the upcoming detailed negotiations. Because the current agreement is non-binding, the final distribution of manufacturing, systems integration, and maintenance workshare remains a critical hurdle before a finalized contract can be signed for the six airframes.

Sources: Saab

Photo Credit: Saab

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Defense & Military

Dassault Signs MoU With Portugal in Rafale F-16 Replacement Bid

Dassault Aviation signed an MoU with AED Cluster Portugal to support its Rafale bid to replace the Portuguese Air Force’s F-16AM/BM fleet.

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Dassault Aviation has formalized an industrial cooperation agreement with Portugal’s national aerospace association, advancing its campaign to replace the Portuguese Air Force’s aging fleet of 28 Lockheed Martin F-16AM/BM Fighting Falcon aircraft.

Signed on September 23, 2026, at the French Embassy in Lisbon, the Memorandum of Understanding (MoU) connects the French manufacturer with AED Cluster Portugal. In a press release issued the same day, Dassault stated the agreement will explore potential areas of cooperation between the Portuguese industrial sector and the primary Rafale program partners, which include Thales and Safran.

The fighter replacement program

The Portuguese Air Force (Força Aérea Portuguesa) is currently evaluating options to modernize its combat capabilities as its F-16AM/BM fleet nears the end of its service life. In December 2025, the Portuguese Air Force Chief of Staff publicly indicated a preference for the United States-built Lockheed Martin F-35A Lightning II. The Portuguese Ministry of Defense has not finalized a formal decision or purchase order, leaving the procurement process open to competing bids.

This pending status has allowed European aerospace manufacturers to pitch alternative platforms. Dassault Aviation officially submitted its bid proposing the Rafale fighter to the Portuguese Government and Air Force in July 2026.

Leveraging local industry

The MoU with AED Cluster Portugal, an organization comprising more than 180 companies, universities, and research institutes, represents a calculated offset strategy. By offering to integrate Portuguese firms into the global supply chain for the Rafale, Dassault aims to provide localized economic benefits to support its bid.

Dassault is not alone in this approach. Swedish manufacturer Saab has proposed the JAS-39 Gripen E, offering technology transfers and local production partnerships with Portuguese aerospace company OGMA. Other European manufacturers, including Airbus with the Eurofighter, have also emphasized European defense sovereignty in their respective pitches to Lisbon.

AirPro News analysis

The competition in Portugal highlights a recurring tension in European defense procurement. On one side is the operational pull of the F-35A, which offers fifth-generation capabilities and seamless interoperability with a growing number of North Atlantic Treaty Organization (NATO) allies. On the other side is the strategic push to sustain the European defense industrial base.

Dassault’s MoU is designed to shift the procurement conversation from purely military specifications to broader economic and political benefits. By promising high-value aerospace work to local industry, European bidders are attempting to make their platforms politically attractive to government decision-makers, even when military leadership has signaled a preference for the American alternative.

Sources: Dassault Aviation

Photo Credit: Dassault Aviation

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