Archer Aviation Just Bought a $200 Million Defense Business From Boeing -- by Giving Up 20% of the Company
Archer Aviation just made its boldest move yet, snapping up three Boeing businesses.
Overview
Archer Aviation (NYSE:ACHR) said Monday it has agreed to buy three businesses from Boeing -- Wisk Aero, SkyGrid, and Insitu. Archer is paying with stock instead of cash, with Boeing receiving newly issued Archer shares equal to 19.75% of the Class A shares outstanding immediately before the deal closes.
The biggest of the three by revenue is Insitu, a military drone business that Archer says is profitable. Insitu brings in more than $200 million in annual sales, which dwarfs Archer's own annual revenues in the singly digit millions.
Details
Investors seemed to like the news, with Archer stock finishing Monday up more than 11%.
Source
Originally published at www.fool.com.
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