(Reuters) - Archer Aviation said on Monday it would acquire Boeing's electric aircraft firm Wisk Aero and two other units, in a deal that will give the planemaker a nearly 20% stake in the air-taxi maker.
The acquisitions, which also include drone maker Insitu and airspace-services provider SkyGrid, give Archer access to Boeing's autonomous-flight technology, potentially bolstering its position in defense and commercial logistics. Archer shares rose about 14% in morning trading.
It also marks Boeing's latest effort to streamline its portfolio and sharpen its focus on its core commercial and defense aircraft businesses, while stepping back from its air-taxi ambitions.
Despite years of investment and ambitious forecasts, the electric vertical takeoff and landing, or eVTOL, sector has yet to prove that air taxis can be certified, built at scale and operated at prices attractive to everyday customers.
As commercial rollouts have taken longer than expected, companies have increasingly turned to military, cargo and government markets for nearer-term revenue and funding.
Wisk has been developing an autonomous electric passenger aircraft.
Under the deal, Boeing and Archer will establish a collaboration and technology-sharing agreement that preserves Boeing's access to Wisk's core autonomous-flight technology for use in its current and future commercial and defense aircraft programs.
Archer, which has yet to generate significant revenue from its core business, will gain access to Insitu, a profitable defense business that generates more than $200 million in annual revenue.
"We gain the ability to start generating significant revenue immediately in a major growth market," Archer CEO Adam Goldstein told Reuters in an interview.
"Demand for intelligence, surveillance and reconnaissance (ISR) drones is probably the highest it has ever been, creating a major opportunity for a company that is already generating revenue and cash flow."
Boeing will receive Archer shares representing 19.75% of the air-taxi company's outstanding Class A stock prior to closing and gain the right to appoint a director to the startup's board.
Reporting by Shivansh Tiwary in Bengaluru; Editing by Maju Samuel, Shailesh Kuber and Leroy Leo
Source: Reuters