Flying taxi maker Archer settles Boeing Wisk lawsuits, shares jump
Reuters
Published Aug 10, 2023 05:12PM ET
Updated Aug 10, 2023 08:05PM ET
By David Shepardson
(Reuters) -Air taxi maker Archer Aviation (NYSE:ACHR) has reached an agreement with Boeing (NYSE:BA) and its Wisk air taxi unit to settle litigation and collaborate on autonomous technology, the companies said on Thursday.
Archer's shares jumped 30% in after-hours trading to $7.60.
Separately, Archer said it completed a $215 million equity investment round that includes Stellantis, Boeing, United Airlines, and ARK Investment Management, increasing Archer’s total funding to date to over $1.1 billion as it works to win Federal Aviation Administration certification and begin commercial operations in 2025.
In a joint statement with Boeing and Wisk, Archer said it "has agreed to make Wisk its exclusive provider of autonomy technology for future variants of Archer’s aircraft."
Boeing said it is making an investment in Archer "that will support the integration of Wisk’s autonomous technology in future variants of Archer’s aircraft."
Boeing added its team members are "focused on supporting Wisk and are excited by their continued progress toward certifying and bringing to market the first all-electric, self-flying air taxi in the U.S."
The agreement settles several lawsuits.
Wisk was formed through a joint venture between Boeing and Google (NASDAQ:GOOGL) co-founder Larry Page's Kitty Hawk Corp, which is now wholly owned by Boeing. Wisk sued rival Archer in 2021 accusing it of stealing trade secrets and infringing on its patents. Archer counter sued Wisk in 2021 "for its false and malicious extra-judicial smear campaign" and Boeing in 2022.
Archer will issue warrants to Wisk for up to 13.2 million shares as part of the settlement and autonomy agreement.
Electric vertical takeoff and landing aircraft (eVTOL) have been touted as the future of urban air mobility. Low-altitude urban air mobility aircraft has drawn intense global interest.
The $215 million funding includes an acceleration of $70 million from Chrysler-parent Stellantis under a 2023 strategic funding agreement.
In January, carmaker Stellantis said it would help build Archer Aviation's electric aircraft and increase its stake in the U.S. company.
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Airlines and other companies are looking at developing transport services using battery-powered aircraft that can take off and land vertically to ferry travelers to airports or for short city trips, allowing them to beat traffic.
Written By: Reuters
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