Boeing Takes Stake in Electric Air-Taxi Startup Archer
Archer Aviation, an electric air-taxi startup, has made significant strides in its development with a major deal announced today. The company is acquiring Boeing's electric-aircraft unit Wisk Aero, along with drone-maker Insitu and airspace-services firm SkyGrid. In return, Boeing will take a 19.75% stake in Archer.
Archer aims to build electric vertical takeoff and landing aircraft for short hops, but the air-taxi industry still faces challenges in getting regulatory approval and running services at affordable prices. Wisk brings autonomous-flight technology developed for electric passenger aircraft, which could help Archer compete for defense and logistics work.
The deal also includes Boeing's ongoing collaboration and technology sharing with Archer. Additionally, Boeing will own 19.75% of Archer's Class A stock at closing and receive two warrants to buy shares later for up to $200 million of additional Archer stock over the one- to four-year period after the deal closes.