Archer Aviation Has $6.9 Million of Revenue. It's Buying a Boeing Business With More Than $200 Million.
Boeing hands over three subsidiaries and walks away owning about 16.5% of Archer. Insitu alone brings annual revenue 29 times Archer's own.
Overview
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.
Details
Archer's own trailing-12-month revenue is $6.9 million. The acquired revenue is about 29 times that.
Source
Originally published at www.fool.com.
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