Archer Aviation Passes Antitrust Review for Boeing Deal, But Stock Still Down 45%
The Hart-Scott-Rodino waiting period for Archer Aviation's acquisition of Boeing subsidiaries Wisk Aero, Insitu, and SkyGrid expired on September 18, clearing a key regulatory hurdle. The deal is expected to close by year-end, with Insitu alone projected to add over $200 million in annual revenue. Despite this progress, shares trade at $5.51, down 45% over the past year, and reaching $10 would require an 81% gain.
The expiration of the Hart-Scott-Rodino waiting period removes a federal regulatory obstacle for the acquisition, which encompasses Boeing’s defense-oriented drone manufacturer Insitu, the autonomous flight firm Wisk Aero, and SkyGrid. Management has indicated the integration will not significantly increase the company’s cash burn rate, and Insitu is expected to generate positive free cash flow independently after the transaction finalizes. The company’s liquidity stands at $1.56 billion.
Archer’s stock has declined roughly 45% over the past year, trading at $5.51, a drop attributed to delays in certifying its Midnight aircraft and a postponed UAE launch. The company reported second-quarter revenue of $5 million, a significant sequential increase. Management also points to a defense platform opportunity with a total addressable market exceeding $100 billion, alongside its progress in the FAA’s final certification phase.
This deal’s outcome could influence the competitive landscape for both urban air mobility and defense drone manufacturing. If the acquisition closes successfully and Insitu’s revenue materializes, it may provide a financial foundation for Archer’s more speculative air taxi ambitions. Conversely, continued certification delays could strain investor confidence and affect the broader eVTOL sector’s perception. Shareholders face significant volatility, while defense clients and future urban transport users could see changes in technology availability and pricing depending on how this integration proceeds.