Archer Aviation agreed to buy three Boeing businesses covering air taxis, drones and autonomous-flight technology, sending its stock up more than 7% on Monday. Boeing takes a 19.75% stake in Archer as part of the deal and the two firms will share autonomous-flight technology. The agreement is expected to close by the end of the year.
Archer Aviation jumped more than 7% on Monday after agreeing to buy three Boeing businesses centered on air taxis, drones and AI-powered autonomous-flight technology. Boeing takes a 19.75% stake in Archer under the deal, and the two companies will enter a technology-sharing arrangement around autonomous flights.
The move puts Archer shares on track to end at their highest level in more than two months, while Boeing's stock was ahead less than 1%. For Archer, the agreement gives it an edge over rival Joby Aviation and other players in the nascent air-taxi sector.
Boeing hands over Wisk, SkyGrid and Insitu
Boeing is transferring Wisk Aero, which develops electric, autonomous air taxis, SkyGrid, an air-traffic management system for autonomous flights, and drone maker Insitu. Financial terms of the deal were not disclosed, though Jefferies analysts said Insitu has about $200 million in annual sales and is profitable. Boeing has been shedding units outside its core jet-making business as part of an ongoing turnaround.
In a statement, Boeing said the deal "creates an end-to-end physical AI platform for aerospace and defense." It also lets Wisk, SkyGrid and Insitu speed up development and reach the market faster, while Boeing continues to benefit from the technology through its core businesses, the company said.
Archer's financial gap with Joby
Even after Monday's rally, Archer's stock had declined more than 30% over the past 12 months. Its Midnight eVTOL carries one pilot and four passengers, travels up to 100 miles on a single charge, and reaches a top speed of 150 miles per hour, but the FAA has not yet approved commercial eVTOL flights in the U.S.
Analysts expect Archer to generate $10 million in revenue in 2026 while posting a $994 million net loss, compared with $121 million in revenue and an $869 million net loss projected for Joby. Archer trades at nine times its projected 2028 sales, versus 20 times for Joby.
Sources: MarketWatch, The Motley Fool via Yahoo Finance
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