Archer Aviation Acquires Boeing Subsidiaries in All-Stock Deal Worth Millions
Archer Aviation, a leading eVTOL (electric vertical takeoff and landing) aircraft manufacturer, has made significant strides in its bid to become a major player in the aerospace industry. On August 10th, Archer announced that it would be acquiring three Boeing subsidiaries in an all-stock deal worth millions of dollars.
The three units being acquired by Archer are Wisk Aero, Insitu, and SkyGrid. Wisk Aero is an autonomous air-taxi developer with over 1,700 test flights under its belt. Insitu is a profitable military drone maker that generates over $200 million in annual revenue across 35 countries. SkyGrid, on the other hand, is an air-traffic software platform.
In exchange for the three units, Boeing will receive newly issued Archer Class A shares equal to 19.75% of that share class, plus options to buy more stock over the next four years. Boeing will also gain a seat on Archer's board and has agreed to invest up to $55 million in an upcoming funding round.
The acquisition is significant because it gives Archer access to Insitu's revenue and Wisk's autonomy technology, which are essential for its air taxi business. It also marks a shift in Archer's business model, moving from a single-product startup to a diversified platform with a mix of defense revenue, autonomy software, and passenger air taxis.