Mentioned:
Joby Aviation is buying the operations of a publicly traded company on the Nasdaq. And they’re hoping it will dramatically accelerate the rollout of their electric air taxis in America.
What’s happening:
- Joby Aviation (NYSE: JOBY) has entered into a deal to acquire Blade Air Mobility’s (NASDAQ: BLDE) passenger business for up to $125M USD
By the numbers:
- Joby Aviation will pay $125M USD in their choice of cash or common shares
- $35M USD of the acquisition is contingent on Blade Air Mobility hitting specific milestones
Why it matters:
- The new acquisition will give Joby Aviation access to existing customers and urban terminals to roll out their electric air taxis in the United States of America once they officially receive federal approval to begin commercial operations
Going deeper:
- Blade Air will not sell their medical transportation business as part of the acquisition and will instead partner with Joby Aviation to begin using their vertical takeoff and landing aircraft whenever possible for medical deliveries
The intrigue:
- Defense contracting giant L3Harris (NYSE: LHX) and Joby Aviation just recently made waves on Wall Street when they formed a new partnership to develop a gas turbine hybrid vertical takeoff and landing aircraft for military purposes
