Archer Aviation Buys $200 Million Defense Business from Boeing

Archer Aviation has made a significant move in its quest to become a major player in the electric vertical takeoff and landing (eVTOL) market. The company has agreed to acquire three businesses from Boeing for $200 million in stock, rather than cash.

The largest of the three businesses is Insitu, which generates more than $200 million in annual sales. This dwarfs Archer's own revenue, which was reported as being in the single digit millions. Insitu makes unmanned aircraft systems (UAS) used for surveillance and reconnaissance, and serves customers in 35 countries.

Boeing will receive newly issued Archer shares equal to 19.75% of the Class A shares outstanding immediately before the deal closes. The company will also receive two warrants worth roughly $100 million each, as well as a seat on Archer's board and a one-year lockout on selling its shares.

The deal is expected to close by the end of the year, although the contract runs until May 9, 2027, and still needs antitrust and national-security clearances. The acquisition of Insitu could provide a financial lifeline for Archer, which reported a net loss of $263.2 million in its second-quarter results.