Joby to acquire urban air mobility passenger business from Blade for $125M

Joby Aviation (JOBY) announced it has entered into a definitive agreement with Blade Air Mobility (BLDE) to purchase Blade’s urban air mobility passenger business. Blade’s Medical division, which was not included in the transaction and will remain a separate public company, is to partner with Joby on medical transportation. As part of the transaction, Joby will also become the preferred VTOL partner to Blade’s organ transport business, which will remain a separate public company to be re-named Strata Critical Medical, wherever Joby has operations. The acquisition includes all of Blade’s passenger business, including operations in the U.S. and Europe, as well as the Blade brand. Under the terms of the agreement, Joby will pay Blade stock or cash, at Joby’s election, up to $125M, subject to customary indemnity provisions and inclusive of $35M of holdbacks which will be released subject to the achievement of certain performance milestones and retention of certain key employees. The transaction is expected to close in the coming weeks, subject to satisfaction or waiver of customary closing conditions.