A Heavyweight Emerges in the AAM Market
In the UAS and AAM industry, the competition for the best positions in the battle for future shares of the developing global market for uncrewed aviation is heating up. Mergers and acquisitions are a well-proven means of achieving this. However, it was not necessarily expected that Archer Aviation would acquire its competitor Wisk Aero and also take over two more companies from the Boeing group, Insitu and SkyGrid.
This was perhaps the most spectacular rivalry in the young „Advanced Air Mobility“ industry. Just a few years ago, Wisk Aero, whose history began as a joint venture between Boeing and Kitty Hawk with Google co-founder Larry Page, and Archer Aviation engaged in a full-blown mudslinging contest. When Wisk accused Archer of theft of trade secrets and patent violations in the air taxi development sector, Archer retaliated by claiming that its opponent was conducting a deliberate defamation campaign. After months of conflict, both sides finally agreed in August 2023 to settle the legal disputes. More than that, they had already agreed at that time to cooperate in autonomous technologies, and Boeing participated as an investor in a funding round that brought Archer a total of $215 million.
Fundamental Agreement Reached
Three years later, the next spectacular development in the turbulent relationship of the two companies has occurred. According to a joint press release from Archer Aviation and Boeing, a fundamental agreement has been reached that Archer will acquire not only Wisk Aero but also Boeing’s subsidiaries Insitu and SkyGrid, provided that the necessary conditions for such deals are met. According to the companies, a corresponding agreement has been signed.
After a long phase of bitter competition, Wisk Aero’s technology will now become part of Archer Aviation’s portfolio (Source: Wisk Aero)
No details were disclosed regarding the exact purchase price; however, it appears to be a pure stock deal. In addition to a seat on the Board of Directors, Boeing reportedly receives nearly 20 percent of Archer Aviation’s shares and a right to purchase up to $200 million in additional shares. Furthermore, a cooperation agreement has been made, giving Boeing access to the UAS and AAM technologies of the Archer group to advance its own projects in the field of uncrewed and (partially) autonomous systems.
Acquisition Boosts Market Penetration and Revenues
For Archer Aviation, the deal primarily means further growth and stronger market penetration. With Skygrid, a provider of air traffic management solutions, and especially the drone manufacturer Insitu, the company’s portfolio has been significantly enhanced and expanded with business areas that have significant and proven revenue potential.
Just a few weeks ago, Archer Aviation and Anduril announced their joint plans for an uncrewed transport platform (Source: Archer Aviation)
Following the mid-July announcement of Archer Aviation’s collaboration with Anduril to develop an uncrewed heavy-lift platform, this latest acquisition marks another step toward building a comprehensive unmanned aviation portfolio and developing physical AI solutions for the fiercely competitive market of future „Urban Air Mobility“ and „Advanced Air Mobility“ applications.
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Main Image: Archer Aviation
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