Archer shares surge after Boeing acquires a stake in the startup

Seeking to focus on its core lines of business, Boeing (NYSE: BA) is selling three of its subsidiaries to Archer Aviation (NYSE: ACHR) in exchange for a stake in the startup specializing in electric vertical takeoff and landing aircraft (eVTOL). Archer shares jumped 18% in premarket trading, while Boeing shares fell 0.2%. The subsidiaries being sold include Wisk Aero, which develops an autonomous eVTOL, and SkyGrid, which develops air-traffic management systems for air taxis. The third Boeing subsidiary being sold, Insitu, develops and manufactures high-altitude drones used worldwide, including by the U.S. Navy.

Brian Yutko, Boeing’s vice president of commercial airplane development, said the deal “allows Wisk, SkyGrid, and Insitu to accelerate product development and bring products to market, while ensuring that Boeing can benefit from its investments in these technologies over the past two decades by continuing to develop in its core business areas.” For Archer, the deal strengthens its position in developing eVTOLs and the networks to support them. The purchase of Insitu will also help Archer expand its defense portfolio.