Archer Aviation to Acquire Boeing’s Wisk and Two Units in 19.75% Stake Deal

Post by : Saif

Archer Aviation has agreed to acquire Boeing's Wisk Aero along with drone maker Insitu and airspace-services provider SkyGrid in a deal that will give Boeing a nearly 20% stake in the electric air-taxi company.

The transaction will expand Archer's technology and defense capabilities while allowing Boeing to reduce its exposure to the developing air-taxi market.

Boeing will receive shares representing 19.75% of Archer's outstanding Class A stock before the deal closes. Boeing will also have the right to appoint a director to Archer's board.

Deal Expands Archer's Technology Portfolio

The acquisition will give Archer access to Boeing's autonomous-flight technology and could strengthen its position in defense, commercial logistics and advanced aviation.

Wisk Aero has been developing an autonomous electric passenger aircraft, while Archer is developing electric vertical takeoff and landing, or eVTOL, aircraft for the emerging air-taxi market.

Archer shares rose around 14% in morning trading following news of the agreement.

Insitu Adds Defense Business to Archer

Insitu, another business included in the transaction, develops unmanned aircraft and technology used for intelligence, surveillance and reconnaissance operations.

The company is already profitable and generates more than $200 million in annual revenue, providing Archer with an established source of income as it continues developing its core air-taxi business.

Archer CEO Adam Goldstein said the acquisition would allow the company to begin generating significant revenue immediately in a major growth market.

He also pointed to strong demand for intelligence, surveillance and reconnaissance drones as an important opportunity for Archer.

Boeing Steps Back From Air-Taxi Ambitions

The agreement represents another move by Boeing to streamline its portfolio and focus on its main commercial and defense aircraft operations.

Boeing has invested in Wisk and the wider eVTOL sector for years, but commercial air-taxi operations have taken longer than expected to develop.

Companies across the eVTOL industry continue to face challenges involving aircraft certification, large-scale production and the cost of operating electric air taxis.

eVTOL Industry Seeks New Revenue Sources

Electric vertical takeoff and landing aircraft are designed to take off and land vertically while using electric propulsion.

The sector has attracted significant investment based on expectations that air taxis could eventually provide a new form of urban transportation.

However, commercial deployment has been slower than many early forecasts suggested.

As a result, companies are increasingly looking toward military, cargo and government applications to generate revenue while the passenger air-taxi market develops.

Boeing and Archer to Continue Technology Partnership

Boeing and Archer will establish a collaboration and technology-sharing agreement as part of the transaction.

The arrangement will allow Boeing to maintain access to Wisk's core autonomous-flight technology for its current and future commercial and defense aircraft programs.

This gives Boeing continued exposure to Wisk's technology even as Archer takes control of the business.

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Archer Gains Defense and Autonomous Flight Capabilities

The acquisition could significantly broaden Archer's business beyond electric passenger aircraft.

By combining Wisk's autonomous aviation technology with Insitu's defense operations and SkyGrid's airspace services, Archer will gain access to several areas of the growing autonomous-flight market.

The deal also provides Archer with a business that already generates revenue while its electric air-taxi operations continue moving toward commercial deployment.

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