Archer $ACHR jumps 18% as Boeing takes 19.75% stake in three-unit deal

Archer Aviation $ACHR rose 18% in premarket trading on August 10, while Boeing $BA slipped 0.2%. The catalyst was Archer's agreement to acquire Boeing's Wisk Aero, SkyGrid and Insitu businesses and related entities. Under Archer's Form 8-K, Boeing will receive newly issued Archer shares equal to 19.75% of the Class A common stock outstanding immediately before closing.

The assets expand Archer beyond commercial electric vertical takeoff and landing aircraft into autonomous flight, military unmanned aircraft and digital air-traffic management. The companies' filed joint release says Insitu is a profitable defense business generating more than $200M in annual revenue and operating across 35 countries. Insitu has manufactured and fielded more than 3,500 unmanned aircraft systems. Wisk has designed and flown six generations of eVTOL aircraft across roughly 2,000 test flights, while the three acquired businesses have nearly 2 million combined flight hours.

The final consideration is not a fixed cash price. Archer's 8-K says the share amount will be adjusted for the target companies' cash relative to an agreed target, net of debt and transaction expenses. Shares issued in certain qualifying Archer capital raises may be excluded from the 19.75% calculation. Boeing will also retain access to Wisk's core autonomous-flight technology through a collaboration and technology-sharing arrangement covering current and next-generation commercial and defense aircraft.

Boeing also receives two warrants. Each covers a share count calculated by dividing $100M by Archer's five-day volume-weighted average price before closing; the exercise prices are $13.00 and $17.88. The first warrant runs from 12 to 36 months after closing and the second from 12 to 48 months. Boeing agreed to a 12-month lock-up on the consideration shares, while warrant exercise is generally limited below 19.9% beneficial ownership.

CNBC's market report recorded the 18% premarket move, indicating that investors initially assigned substantial value to the added defense revenue and autonomy portfolio. The structure also creates dilution: Boeing's consideration is a large equity position, and the exact number of shares will not be known until closing adjustments are completed.

The next checkpoints are expiration or termination of the Hart-Scott-Rodino waiting period and satisfaction of the other agreed closing conditions. Archer and Boeing target completion by the end of 2026. The initial termination date is May 9, 2027, with a possible three-month extension if only the regulatory condition remains. Investors will then be able to measure the issued share count, Boeing's adjusted ownership and the date when Insitu's more than $200M of annual revenue enters Archer's consolidated results.

Not investment advice. Verify all figures with primary sources before acting.