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Archer Aviation to Acquire Boeing's Wisk Aero, 2 Other Units for Nearly 20% Equity Stake; Archer Shares Jump

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Archer Aviation to Acquire Boeing's Wisk Aero, 2 Other Units for Nearly 20% Equity Stake; Archer Shares Jump

Archer Aviation (ACHR) shares climbed by more than 16% in Monday trading after agreeing to acquire Boeing's (BA) Wisk Aero, SkyGrid and Insitu units in exchange for a nearly 20% stake in the air taxi maker.

Under the terms of the deal, Boeing will receive a 19.9% stake in Archer, along with two warrants to purchase up to $100 million shares each, according to a Securities and Exchange Commission filing.

California-based Archer is developing electric vertical takeoff and landing (eVTOL) aircraft, with its flagship Midnight air taxi currently advancing through Federal Aviation Administration flight testing for urban commercial operations.

The companies expect to close the transaction by the end of 2026, with a formal termination deadline of May 9, 2027, that can be extended by three months to clear regulatory reviews.

"This is a watershed moment for Archer and the future of physical AI in aerospace and defense," Archer's chief executive Adam Goldstein said. "This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."

Wisk Aero develops autonomous electric aircraft, SkyGrid builds automated air traffic management systems, and Insitu manufactures defense drones

"This transaction is a win-win for Boeing and Archer," said Brian Yutko, Boeing vice president, commercial airplanes product development. "It allows Wisk, SkyGrid and Insitu to accelerate capability development and time to market while ensuring Boeing capitalizes on its investments in these technologies over the past two decades through continued development in our core businesses."

Last month, Boeing reported a wider-than-expected second quarter core loss per share while revenue topped Wall Street expectations, supported by higher commercial airplane deliveries. Archer's second quarter earnings are scheduled after market close Monday.

Boeing continues to benefit from its transition from operational recovery to sustained production, supported by strong aircraft demand and a record backlog, Tigress Financial Partners said in a note last week.

The brokerage reiterated its buy rating on Boeing's stock and raised its price target to $305 from $295.

Price: $6.61, Change: $+1.02, Percent Change: +18.26%

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