Archer Aviation Acquires Boeing Businesses in All-Stock Deal Worth $4.2 Billion

Archer Aviation (ACHR) shares surged 12% to $6.26 on Monday after the company announced it would acquire three Boeing businesses in an all-stock deal.

The companies involved are Wisk Aero, SkyGrid, and Insitu. Archer will take over these autonomous flight units without paying cash, instead issuing newly minted Class A common shares equal to 19.75% of its outstanding shares before the transaction, as well as two warrants valued at around $100 million each and a board seat for Boeing.

Insitu is the largest asset by revenue, with annual sales exceeding $200 million from customers in 35 countries. Archer's own annual sales remain in the single-digit millions. Wisk is developing an autonomous air taxi, while SkyGrid provides automated airspace management software.

The deal aims to bring scale and diversified capabilities to Archer, combining the acquired technologies with its internal AI efforts to create a comprehensive physical AI platform for aerospace and defense. Boeing executive Brian Yutko stated that the transaction will form an industry leader in advanced air mobility.