Archer Aviation acquires former rival Wisk Aero from Boeing
Electric aircraft maker Archer Aviation has struck a deal to acquire Boeing's subsidiary Wisk Aero, along with two other units, in exchange for a stake in Archer. The acquisition caps a relationship that began with a bitter lawsuit before evolving into a partnership.
Electric vertical takeoff and landing (eVTOL) developer Archer Aviation has become the owner of its former rival Wisk Aero. According to a regulatory filing released Monday, Boeing has agreed to sell Wisk Aero, along with two other subsidiaries, to Archer in exchange for an ownership stake in the company.
The other units included in the deal are SkyGrid, a digital airspace and air traffic management software company, and drone maker Insitu. Boeing will receive newly issued Archer shares equal to 19.75% of Archer's shares outstanding immediately before closing, resulting in an approximate 16.5% stake in Archer once the deal closes.
From lawsuit to collaboration
The acquisition marks a turning point in a relationship that was once openly hostile. In April 2021, Wisk sued Archer, alleging theft of confidential information and intellectual property. The legal dispute continued for two years until the companies reached an unusual settlement that ended both the lawsuit and Archer's counter-suit, which had sought $1 billion in damages. As part of that settlement, Archer agreed to make Wisk its exclusive provider of autonomous flight technology and gave Wisk the option to buy Archer shares at a nominal price.
Wisk Aero traces its roots to Kittyhawk, an electric aviation startup led by Sebastian Thrun and backed by Google co-founder Larry Page. Kittyhawk's Cora program was spun off in late 2019 into a joint venture with Boeing, later renamed Wisk. Boeing invested hundreds of millions of dollars into the venture over the years, and by 2023 Wisk had become a fully owned Boeing subsidiary.
Archer, meanwhile, has expanded into the defense sector in recent years, partnering with weapons maker Anduril and raising hundreds of millions of dollars in funding. The company also continues to develop its all-electric Midnight aircraft, recently completing a piloted test flight in California.
