Archer Aviation Acquires Wisk Aero from Boeing

Archer Aviation, an electric aircraft company based in California, has acquired its former rival Wisk Aero as part of a deal with Boeing. The agreement sees Boeing selling three subsidiaries to Archer in exchange for an ownership stake in the company.

The deal involves Boeing's sale of Wisk Aero, SkyGrid, and Insitu to Archer. In return, Boeing will receive newly issued Archer shares equal to 19.75% of Archer's shares outstanding immediately before closing. This translates to a 16.5% stake in the company after the deal.

The acquisition marks the culmination of a once-contentious relationship between the two companies. The dispute began when Wisk Aero sued Archer Aviation in April 2021, alleging 'brazen theft' of confidential information and intellectual property. A two-year legal battle ensued before the parties reached an unusual settlement that ended both lawsuits.

Under the terms of the agreement, Archer agreed to make Wisk the exclusive provider of autonomous technology. Additionally, Archer granted Wisk the option to purchase up to 13,176,636 shares of common stock at a price of $0.01 per share.