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Archer agrees to buy Wisk and expands Boeing stake
The all-stock deal will also give Boeing a roughly 19.75% initial stake in Archer, plus an additional $55 million investment commitment and warrants for up to $200 million more shares.
Archer Aviation agreed to acquire Wisk Aero and two other related units, shifting from a prior legal dispute into a full corporate combination that also pulls Boeing further into Archer’s orbit, according to Yahoo Finance.
The agreement calls for an all-stock transaction in which Archer will buy Wisk Aero, SkyGrid, and Insitu. SkyGrid is described as providing digital airspace and air-traffic-management software, while Insitu is a drone producer.
Boeing will receive newly issued Archer Class A shares equal to 19.75% of Archer’s outstanding shares immediately before closing, leaving Boeing with about a 16.5% stake after the transaction, the report said. Boeing also agreed to invest up to $55 million in an upcoming Archer funding round and to obtain warrants to buy up to $200 million in additional Archer stock in the future.
As part of the restructuring, the companies signed a cross-licensing deal allowing Boeing to keep using Wisk’s fundamental autonomous flight systems for its commercial and defense programs. For Archer, the combined businesses include a defense operation with annual revenue above $200 million across 35 nations, plus Wisk’s eVTOL aircraft designs and more than 1,700 completed test flights.