Blade Air Mobility to sell passenger division to Joby Aviation for up to $125M

Blade Air Mobility (BLDE) announced an agreement to sell Blade’s passenger division to Joby Aviation (JOBY) for up to $125M. Following the close of the transaction, Blade’s Medical division will remain public and re-brand as Strata Critical Medical, focusing on leveraging its asset-light platform to provide mission critical logistics and medical services to hospitals and healthcare providers throughout the country, while strengthening and growing its business portfolio both organically and through acquisitions. Trinity Medical Solutions, the Company’s operating business in the Medical segment and one of the largest air transporters of human organs for transplant in the United States, will remain Strata’s wholly owned subsidiary. The divestiture of Blade’s passenger business includes operations in the US and Europe, lounges and terminals in key hubs, as well as the Blade brand. Operations will continue with the business functioning as a standalone entity within Joby upon closing. As part of this transaction, Strata will gain access to Joby aircraft for medical use as part of a long-term eVTOL partnership between the companies. It is expected that the quiet capabilities of Joby’s aircraft, coupled with its potential to operate at lower costs than traditional helicopters and other shorter-range aircraft, will provide value to Strata customers and a competitive advantage for the Company. The financial impact of the divestiture is expected to be Adjusted EBITDA and Free Cash Flow neutral, supported by approximately $7M in estimated annual corporate cost efficiencies. At the closing of the transaction, Rob Wiesenthal, Founder and CEO of Blade, will join Joby as CEO of Blade Air Mobility and will also serve as Chairman of the Board of Strata. Will Heyburn, Blade’s CFO, and Melissa Tomkiel, Blade’s President and General Counsel, will succeed Mr. Wiesenthal, serving as Co-CEOs of Strata while retaining their CFO and General Counsel roles, respectively. Blade’s current Chairman, Eric Affeldt, will be named Lead Independent Director. The purchase price paid by Joby will be up to $125M and may, at Joby’s election, be paid in cash or Joby stock, subject to customary indemnification holdbacks and includes up to $35M of earnouts based on performance and retention metrics. Blade’s Board of Directors formed a Transaction Committee consisting of independent directors to evaluate the transaction. The transaction is expected to close in the coming weeks. A new ticker for Strata will be announced at a later date.