Archer Aviation to acquire Boeing's automated air taxi effort

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Set us as preferred The California air taxi startup Archer Aviation is set to acquire Boeing’s Wisk Aero in an agreement that would allow the companies to collaborate and share technology.Boeing launched Wisk in 2019 with the intent to build fully autonomous air taxis for short trips.

Archer got its start one year earlier, aiming to bring piloted air taxis to the mass market.The companies said they signed definitive agreements Monday for San Jose-based Archer to acquire Wisk along with Boeing’s air traffic software provider SkyGrid and drone maker Insitu.

Under the terms of the deal, Boeing would take a minority stake in Archer and retain access to Wisk’s autonomous flight technology.Financial terms were not disclosed.The deal is expected to close by the end of the year, the companies said.

Business As they compete to make flying cars a reality, air taxi companies Archer and Joby are involved in a complex legal battle that has spanned half a year.“This transaction is a win-win for Boeing and Archer,” said Brian Yutko, Boeing vice president of commercial airplanes product development, in a statement.“It’s clear this transaction will create an industry leader in the advanced aviation market.”According to a filing with the U.S.

Securities and Exchange Commission, Boeing agreed to take a nearly 20% stake in Archer and is allowed to nominate one person to Archer’s board of directors.Archer shares rose nearly 7% in midday trading Monday.The company has a market value of more than $4.5 billion.The deal with Boeing could give Archer a boost in its battle with Joby Aviation, another California-based air taxi company that has a market value of more than $8.5 billion.

Vermont-based Beta Technologies is also competing in the race to deploy air taxis at a commercial scale.Wisk got its start as a joint venture betwee...