From Courtroom Rivals to Corporate Partners: Archer Buys Its Way Into Boeing’s Orbit

Five years ago, Wisk Aero filed a lawsuit against Archer Aviation Inc. for allegedly stealing its trade secrets. Recently, the two companies reached a surprising agreement: Archer agreed to purchase Wisk Aero, along with two other Boeing subsidiaries, in a deal that grants Boeing a 20% stake in Archer. This marks a shift from rivals to partners, as Boeing will invest in Archer Aviation Inc. and jointly develop autonomous-flight technology.

Archer's stock rose around 20% after the announcement, and the deal includes a cross-licensing arrangement, allowing Boeing to utilize Wisk's autonomous flight systems for its own commercial and defense programs. The acquisition includes a defense firm with $200 million in annual revenue and Wisk's six generations of eVTOL aircraft designs and over 1,700 test flights.

This move aligns with CEO Kelly Ortberg's strategy to streamline Boeing's portfolio by shedding non-core businesses. While Archer's market sentiment is somewhat pessimistic due to a 14.14% short interest, the presence of Boeing as a key shareholder and technology partner provides growth investors with a strong value support.