Prime Highlights
- Boeing will receive a 19.75% Class A stake in Archer.
- Archer will acquire Wisk, SkyGrid and Insitu from Boeing.
Key Facts
- Boeing is an aerospace company focused on commercial airplanes, defence and space.
- Archer Aviation develops electric vertical take-off and landing aircraft for urban air mobility.
Background
Boeing is selling three subsidiaries to Archer Aviation as part of a plan to focus more closely on its main commercial aeroplanes, defence and space businesses. In return, Boeing will receive a 19.75% stake in Archer’s Class A shares, along with options to buy additional shares over the next four years.
The deal includes Wisk Aero, SkyGrid and Insitu. Wisk develops autonomous electric vertical take-off and landing (eVTOL) aircraft, while SkyGrid works on air traffic management systems for air taxis. Insitu develops and manufactures high-altitude drones used for military and other applications.
The transaction will strengthen Archer’s position in the growing eVTOL market. The company will gain access to Wisk’s autonomous aircraft technology and SkyGrid’s air traffic management capabilities. Insitu will also help Archer expand its presence in the defence and military market.
Archer is working towards launching commercial eVTOL flights by the end of this year or early next year. The acquisition will give the company a broader portfolio as the urban air mobility market moves towards commercial operations.
For Boeing, the deal supports its strategy of streamlining operations and concentrating capital on its core businesses. The company said the transaction will allow the three subsidiaries to speed up product development while helping Boeing benefit from investments made in these technologies over the past two decades.
Boeing Vice President Brian Yutko said the deal would help Wisk, SkyGrid and Insitu accelerate development and reach the market faster. Archer CEO Adam Goldstein said the acquisition would help diversify the company, increase revenue and create greater scale.
