Boeing is buying a majority stake Embraer’s commercial and services operations for $4.2 billion.
Embraer is the third biggest maker of civil aircraft after Boeing and Airbus.
The joint venture gives Boeing 80 percent ownership of those operations, with Embraer owning the remaining stake.
Based on that price, Embraer’s value is now valued at $5.26 billion.
Boeing will have operational and management control of the company.
The deal still needs approval from the Brazilian government, as well as shareholders and regulators.
The companies also agreed to another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390.
Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.
The Associated Press contributed to this article.