Mentioned:
Archer Aviation is buying multiple subsidiaries from The Boeing Company. But, why?
What’s happening:
- Archer Aviation (NYSE: ACHR) has entered into a definitive agreement with The Boeing Company (NYSE: BA) to acquire their subsidiaries Wisk Aero, SkyGrid and Insitu
By the numbers:
- Archer Aviation will issue 19.75% of their common shares outstanding immediately prior to closing to The Boeing Company as part of the acquisitions
Why it matters:
- This is the single largest acquisition that Archer Aviation has ever made
Going deeper:
- The Boeing Company’s Wisk Aero is one of the most advanced autonomous electric vertical takeoff and landing aircraft companies in the United States and has built and flown six generations of aircraft and successfully completed 1,750 test flights
- Insitu is The Boeing Company’s unmanned aircraft business that manufactures the ScanEagle and Integrator ISR drones that are used by the United States military and generates more than $200M USD annually in revenue
- The Boeing Company will also get one board seat at Archer Aviation when the deal closes and is entitled to keep their board seat as long as they maintain a 10% equity stake in the company
The intrigue:
- Anduril and Archer Aviation just recently made major waves when they unveiled a new autonomous attack aircraft known as Thunder that is capable of carrying payloads such as air-to-ground missiles and guided rockets
