Archer acquires former rival Wisk Aero in major electric aircraft consolidation
Electric aircraft maker Archer Aviation now owns its former rival Wisk Aero, alongside subsidiaries SkyGrid and Insitu, following a deal with Boeing.
Stock photo for illustration only, not from the actual event
- Archer Aviation has acquired its former electric aircraft rival Wisk Aero
- Boeing agreed to sell Wisk, SkyGrid, and Insitu in exchange for an equity stake in Archer
- The buyout follows a historic legal settlement that ended a trade secret lawsuit from 2021
- Boeing will hold approximately a 16.5% stake in Archer after the transaction closes
Three years after settling a bitter trade secret lawsuit, electric aircraft company Archer Aviation has officially taken ownership of its former rival, Wisk Aero. The transaction marks a massive consolidation milestone within the advanced air mobility sector, bringing together two key players that once stood on opposite sides of a courtroom.
Under the terms of the agreement detailed in a regulatory filing, Boeing has agreed to sell Wisk Aero and two additional subsidiaries to Archer in exchange for newly issued shares in the company. The other included subsidiaries are SkyGrid, a digital airspace and air traffic management software developer, and Insitu, a prominent drone manufacturer.
This acquisition serves as the capstone to a once-embittered relationship between the two companies developing electric vertical takeoff and landing aircraft. Back in April 2021, Wisk sued Archer over allegations of intellectual property theft, sparking a two-year legal battle that ultimately concluded with an unexpected settlement and a collaborative partnership.
Stock photo for illustration only, not from the actual event
That settlement not only dropped the lawsuit and Archer's $1 billion counter-suit, but it also designated Wisk as Archer's exclusive provider of autonomous technology while granting Wisk the option to purchase millions of shares at a nominal price. Wisk's lineage traces back to Kittyhawk, an electric aviation startup backed by Google co-founder Larry Page before spinning off Cora into a joint venture with Boeing.
"The acquisition is a capstone to a once-embittered relationship between two companies developing electric vertical takeoff and landing aircraft."
TechCrunch
This deal represents a strategic pivot for Boeing, which previously invested heavily in Wisk, including a $450 million injection in early 2022 before taking full ownership in 2023. By swapping its subsidiary for an equity stake in Archer, Boeing aligns its aerospace footprint with Archer's rapidly expanding commercial and defense aerospace programs.
Meanwhile, Archer has aggressively broadened its operational scope beyond commercial air taxis. The California-based startup has expanded into the defense sector through Archer Defense, partnered with weapons manufacturer Anduril, and continued flight testing its all-electric Midnight aircraft as it prepares for upcoming integration pilot operations.
Source: TechCrunch
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