Archer secures $215 million investment, settles rival Wisk lawsuits

investing.com:

By David Shepardson

(Reuters) — Air taxi maker Archer Aviation said on Thursday it secured a $215 million equity investment and reached agreement with Boeing (NYSE:BA) and its Wisk air taxi unit to collaborate and settle litigation.

Archer said the new equity investment round includes Stellantis, Boeing, United Airlines, and ARK Investment Management LLC, 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.

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 agreement settles lawsuits filed in 2021.

Wisk, formed through a joint venture between Boeing and Google (NASDAQ:GOOGL) co-founder Larry Page's Kitty Hawk Corp that is now wholly owned by Boeing, sued rival Archer in 2021 accusing it of stealing trade secrets and infringing on its patents. Archer countered Wisk «for its false and malicious extra-judicial smear campaign.»

Archer said the companies have reached an autonomous flight collaboration agreement that will settle the pending lawsuits.

The $215 million funding includes an acceleration of $70 million from Stellantis under a 2023 strategic funding agreement.

Stellantis in January said it would help build Archer Aviation's electric aircraft and increase its stake in the U.S. company.

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.