Archer shares surge after Boeing stake, aircraft subsidiary deal
Boeing is selling three subsidiaries—Wisk Aero, SkyGrid, and Insitu—to Archer Aviation in exchange for a 19.75% stake in the company. This move allows Boeing to focus on core operations while Archer expands its portfolio in the electric vertical take-off and landing (eVTOL) market.
Why it matters
This consolidation signals a strategic shift in the aerospace industry toward urban air mobility and autonomous flight technologies.
In a move to increase its focus on core operations, Boeing is selling three of its subsidiaries to Archer Aviation in exchange for a stake in the startup that focuses on electric vertical take-off and landing aircraft, known as eVTOLs for short.
Boeing's stake in Archer will amount to 19.75% of Class A shares of the company and comes with options to purchase more shares over the next four years, according a regulatory filing .
Shares of Archer gained almost 12% Monday.
The subsidiaries include Wisk Aero, which has been developing an autonomous eVTOL, and SkyGrid, which is developing air traffic management systems for air taxis as urban air mobility moves from test flights to commercial operations. The third Boeing subsidiary being sold, Insitu, develops and manufactures high-altitude drones that have been used worldwide, including by the U.S. Navy.
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