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Archer Aviation (NYSE: ACHR) repriced 20% higher to $6.69 Monday after agreeing to acquire Boeing's (NYSE: BA) Wisk Aero, SkyGrid, and Insitu subsidiaries in exchange for a 20% Boeing ownership stake, warrants, and a board seat.
The case for the stock is real. The risk is that Archer is still a pre-revenue air-taxi company taking on three subsidiaries it cannot legally close on until year-end at the earliest.
What the deal puts on the table Archer came into Monday's session down 26% year to date through Friday's close, and Insitu alone generates over $200 million in annual revenue across 35 nations as a profitable defense and uncrewed aircraft systems business.
Wisk brings autonomy intellectual property, and the three units together carry nearly two million combined flight hours.
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