Boeing Deal Set to Transform Archer Aviation's Profile
Archer Aviation's recent deal with Boeing is set to significantly change the company's profile and path to revenue growth, according to Insitu CEO Sneha Gupta. Archer expects the acquisition of Insitu, which generates more than $200 million in revenue annually, to contribute positive free cash flow and help the company operate on a self-funding basis.
The deal will also give Boeing nearly 20% of Archer's pre-deal share count, translating to around a 16% stake in the company. Insitu CEO Gupta emphasized that the acquisition, along with Archer's existing product portfolio and AI solutions tailored for aviation, will 'significantly change the profile' for the company.
Archer Aviation CEO Adam Goldstein noted that the company expects cash flow and revenue from its current product portfolio in the near term, but sees potential for a 'whole new suite of products' to be developed and generate higher revenue. The company reported $5 million in total revenue in the second quarter, exceeding market expectations.