Archer Buys 3 Boeing Units in All-Stock Deal as Profitable Insitu Adds $200 Million Revenue
Updated
Updated · Yahoo Finance · Aug 12
Archer Buys 3 Boeing Units in All-Stock Deal as Profitable Insitu Adds $200 Million Revenue
3 articles · Updated · Yahoo Finance · Aug 12
Summary
Archer shares rose 8.5% after earnings as investors focused on its agreement to acquire Boeing-owned Wisk Aero, Insitu and SkyGrid, a deal expected to close by end-2026.
Insitu is the immediate prize: management says the drone maker is already profitable, generates more than $200 million in annual revenue across 35 countries, and dwarfs Archer's roughly $7 million trailing-12-month revenue.
Q2 results were still small by comparison, with revenue of $5 million—more than triple the prior quarter—while Archer posted a $0.25 per-share loss and a $177 million adjusted EBITDA loss.
Paying with stock leaves Archer's $1.6 billion liquidity intact even as Boeing takes roughly a 20% stake plus warrants, and management said cash burn should stay relatively flat after the acquisitions close.
The deal broadens Archer beyond certifying its Midnight air taxi, which remains in the FAA's final certification phase after more than 150 piloted test flights.
Will absorbing military drone maker Insitu transform pre-commercial Archer into a defense powerhouse, or fatally distract from its core passenger aircraft goals?
Could a hidden whistleblower lawsuit over software safety derail Archer Aviation’s ambitious timeline for certifying its newly acquired air taxi tech?
Why is Boeing offloading its prized autonomous flight units to a former rival just as the eVTOL race heats up?