Archer Aviation Has $6.9 Million of Revenue. It's Buying a Boeing Business With More Than $200 Million.
Archer Aviation Has $6.9 Million of Revenue. It's Buying a Boeing Business With More Than $200 Million.
Daniel Sparks, The Motley FoolSat, August 15, 2026 at 8:43 AM UTC
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Key Points -
Archer will issue Boeing new stock equal to 19.75% of its shares outstanding just before closing, leaving Boeing with about 16.5% of the company.
Insitu alone adds more than $200 million of annual revenue, about 29 times Archer's trailing-12-month total of $6.9 million.
The deal is expected to close by the end of 2026, subject to antitrust and national-security approvals.
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Archer Aviation(NYSE: ACHR) is buying Boeing's (NYSE: BA) Wisk Aero, Insitu, and SkyGrid subsidiaries, and the price is a piece of itself. At closing, Archer will issue Boeing new stock equal to 19.75% of its shares outstanding just before the deal completes -- which leaves Boeing owning about 16.5% of the company, or about a sixth.
The sixth buys a revenue base Archer doesn't have. Insitu, a maker of unmanned military aircraft used by the armed forces of 35 nations, brings more than $200 million of annual revenue -- profitable revenue, Boeing's release notes.
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Archer's own trailing-12-month revenue is $6.9 million. The acquired revenue is about 29 times that.
Wisk Aero builds autonomous aircraft, and SkyGrid runs digital airspace-management software. Neither's revenue was disclosed.
Image source: Getty Images.
The rest of the terms
Boeing also receives two warrants, each covering about $100 million of stock, struck at $13.00 and $17.88 per share. It gains the right to nominate a director. And it agreed to buy up to $55 million of stock in a future Archer offering of at least $400 million, at Archer's election.
The deal is expected to close by the end of 2026, pending the antitrust waiting period and national-security approvals.
Of course, stock is a currency that moves. The 19.75% is fixed as a slice of the share count, not as a dollar figure, so what the sixth ends up costing Archer's current owners depends on where the stock trades at closing.
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For scale, Archer's market value is about $4.8 billion, so the new shares Boeing is taking were worth about $950 million at Monday's close. The company's second-quarter revenue was $5.0 million, its net loss $263.2 million, and its cash and investments $1.56 billion.
Existing shareholders end up owning about a sixth less of a company with far more revenue in it. What the stock rides on, though, hasn't changed. Archer's valuation still rests mostly on Midnight, its electric air taxi -- the acquired businesses account for about $200 million of annual revenue at a company valued near $4.8 billion. What Wisk and SkyGrid grow into could change that arithmetic. For now, the rest of the valuation is still the aircraft.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.
Source: “AOL Money”
