Boeing Bets on Archer Aviation with Wisk Acquisition

California-based air taxi startup Archer Aviation is set to acquire Boeing's Wisk Aero in a deal that will see Boeing take a minority stake in Archer. The agreement, which includes Boeing's air traffic software provider SkyGrid and drone maker Insitu, is expected to close by the end of the year.

The terms of the deal were not disclosed, but Archer shares rose nearly 7% in midday trading Monday. This acquisition could give Archer a boost in its battle with Joby Aviation, another California-based air taxi company with a market value of over $8.5 billion.

Wisk got its start as a joint venture between Boeing and Google co-founder Larry Page's Kitty Hawk Corp. and has flown six generations of electric vertical takeoff and landing aircraft, or eVTOLs. In 2022, Boeing invested $450 million in Wisk to support its mission to build a self-flying air taxi.

Archer CEO Adam Goldstein said the deal 'positions Archer to deliver an end-to-end physical AI platform across commercial aerospace, defense and air traffic management that can lead the next generation of aviation.'