Quick Takeaways
- Archer Aviation acquired Wisk Aero, once a rival, for a stake in the company.
- Boeing sold Wisk, SkyGrid, and Insitu to Archer for shares, gaining about 16.5%.
- Wisk, originally Kittyhawk, developed autonomous electric air taxis, spun off from Boeing.
- Archer, founded in 2018, expanded into defense and electric aircraft, progressing with flight tests.
Archer’s Strategic Move to Acquire Former Rival Wisk Aero
Three years after a legal battle over trade secrets, Archer Aviation now owns Wisk Aero, its former competitor. This deal marks a significant change in the electric vertical takeoff and landing (eVTOL) aircraft industry. Boeing, which once partnered closely with Wisk, agreed to sell the company and two other subsidiaries to Archer. In return, Boeing will receive nearly 20% ownership of Archer. After the deal, Boeing’s stake will be about 16.5%.
This acquisition ends years of legal disputes and signals a new phase for both companies. Wisk was once part of a joint venture with Boeing. The two companies aimed to develop autonomous eVTOL air taxis. However, legal conflicts in 2021 slowed their progress. Wisk accused Archer of stealing trade secrets. The lawsuit lasted two years before both companies settled. As part of the agreement, Archer made Wisk the only provider of autonomous technology and offered Wisk the chance to buy shares at a very low price. Now, years later, Archer is buying Wisk outright, showing how much the industry has changed.
Implications for the Electric Aviation Industry
Archer has grown quickly. Since launching in 2018, the California startup expanded beyond air taxis. It entered defense projects and raised hundreds of millions of dollars. The company also teamed with weapons maker Anduril to develop hybrid aircraft for military use. Archer is working on its Midnight aircraft, which recently completed a test flight. It plans to begin commercial operations later this year.
Wisk’s history reflects rapid innovation. Starting as Kittyhawk, it was led by tech pioneers like Sebastian Thrun and funded by Google co-founder Larry Page. Wisk aimed to produce autonomous air taxis like Cora, a two-person aircraft. Boeing invested heavily in Wisk, making it a full subsidiary in 2023. Now, Archer’s acquisition combines the expertise and assets of both companies, potentially accelerating industry development. As electric air taxis become more practical, this strategic move could influence how cities and companies adopt new transportation methods.
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