Archer Aviation soars on Boeing subsidiary acquisition deal

Archer Aviation announced on Monday that it would acquire three Boeing subsidiaries as part of a multipart strategic transaction, sending Archer's stock up 11.99%. The three companies are Wisk Aero, a pioneer in electric vertical takeoff and landing (eVTOL) aircraft known for its flight-control, sensor, and radar systems; SkyGrid, which develops air traffic management tools designed for automated airspaces; and Insitu, a manufacturer of uncrewed aircraft used by the U.S. military and its allies for intelligence, surveillance, and reconnaissance missions. Boeing will retain a nearly 20% ownership stake in Archer as part of the deal structure, and the two companies will also share access to Wisk's core autonomous flight technology going forward. Archer's stated goal is to combine the autonomous capabilities and defense expertise of the three acquired companies with its own artificial intelligence initiatives to create what the company calls "a groundbreaking end-to-end physical AI platform for aerospace and defense." Archer CEO Adam Goldstein said in a statement: "This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base, and bringing scale to our business." Boeing executive Brian Yutko echoed the sentiment, saying: "Having worked with the incredible teams in these companies firsthand, it's clear this transaction will create an industry leader in the advanced aviation market."