Archer Aviation Acquires Wisk Aero and Subsidiaries from Boeing
Archer Aviation has made a significant move in the electric aircraft market by acquiring Boeing's Wisk Aero and two other subsidiaries. The deal will give Boeing nearly a 20% stake in Archer, with the planemaker receiving shares representing 19.75% of Archer's outstanding Class A stock at closing.
The acquisition also includes drone maker Insitu and airspace-services provider SkyGrid, giving Archer access to Boeing's autonomous-flight technology. This technology is expected to bolster Archer's position in defense and commercial logistics.
Archer shares rose about 17% in morning trading after the announcement, with the company gaining access to a profitable defense business that generates more than $200 million in annual revenue. Boeing will also receive two warrants to buy up to $200 million of Archer stock, exercisable over the one- to four-year period following the deal's closure.
The acquisition marks Boeing's latest effort to streamline its portfolio and sharpen its focus on commercial and defense aircraft businesses. Wisk has been developing an autonomous electric passenger aircraft, while Archer last month unveiled an autonomous vertical-takeoff-and-landing aircraft platform co-developed with Anduril at the Farnborough Airshow.