Archer to Acquire Boeing’s Wisk and Two Subsidiaries for Near 20% Equity Stake
Boeing will take an equity stake in Archer as it sheds noncore businesses to focus on commercial airplanes, defense and space.
- Boeing is selling three subsidiaries—Wisk Aero, SkyGrid, and Insitu—to Archer Aviation in exchange for an undisclosed stake, allowing Boeing to focus on core commercial airplanes, defense, and space operations.
- Since taking over in Aug, CEO Kelly Ortberg has been streamlining the aerospace giant to improve its three primary businesses, emphasizing the need to "reset priorities and create a leaner, more focused organization."
- Archer CEO Adam Goldstein said the acquisition is the "next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business." Both companies stand to benefit from Wisk's autonomous technology.
- Targeting commercial VTOL flights later this year or early next year, Archer is the Official Air Taxi Provider of the LA28 Olympic Games, positioning itself as urban air mobility accelerates.
- Shares of Archer trade at $5.59, down 42.96% over the past year, as the company faces cash burn and the need to launch commercial service to justify reaching a $10 price target.
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Archer Aviation shares jump nearly 10% on deal to acquire Boeing’s Wisk, two other units
Archer Aviation shares surged after agreeing to acquire Boeing's Wisk Aero and two other units. This strategic acquisition grants Archer access to Boeing's autonomous-flight technology and defence capabilities. Boeing will receive a significant stake in Archer and board representation as part of the deal. The move allows Archer to immediately generate revenue from the profitable Insitu drone business.
Archer Aviation Acquires Boeing’s Flying-Taxi Venture in Stake Deal
Boeing is selling its flying-taxi venture to Archer Aviation in exchange for a sizable stake in the startup, as the aerospace giant continues to narrow its focus toward its core aircraft businesses. The companies said on Aug. 10 that Archer would acquire three Boeing subsidiaries: Wisk Archer, a developer of electric vertical takeoff and landing (eVTOL) aircraft; SkyGrid, a provider of air traffic management technology for air taxis; and Insitu,…
Boeing to divest tech ventures for stake in air-taxi startup
The transaction shifts to Archer Boeing's Wisk autonomous aircraft venture and SkyGrid and Insitu businesses for the equity and warrants for additional potential stock purchases in California-based Archer. Shares of Archer surged on the announcement, which caps Boeing's potential stake at just under 20 percent. Archer aspires to build a fleet of air taxis that could potentially jet New York City travelers to airports in 15 minutes or less, avoid…
Archer Aviation's shares rose 16.3% in the middle of the morning at the New York Stock Exchange (Nyse), after announcing an agreement to purchase some Boeing subsidiaries, expanding their capabilities in the so-called "Flying Cars." Exclusive subject matter for subscribers. To have full access, access the link of the subject and register.
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