Joby Aviation to Acquire Blade in Deal Worth Up to $125 Million. The Stocks Are Flying.

The deal will give Joby air-taxi access and infrastructure in New York and Southern Europe. (Courtesy of Joby)

Joby Aviation has agreed to acquire Blade Air Mobility in a deal that could be worth up to $125 million, the companies announced Monday.

Joby, which develops electric air taxis, will purchase the Blade brand and Blade’s passenger air-taxi business using stock or cash. Under the deal, Blade’s passenger business will operate as a wholly-owned subsidiary of Joby led by Blade CEO Rob Wiesenthal and continue operations as normal.

Shares of Joby jumped 16% on Monday, while Blade stock spiked 28%.

The deal gives Joby access to passenger infrastructure in the New York City metro area and key urban areas in southern Europe. The acquisition also comes ahead of Joby’s expansion into Dubai next year.

“Over the last decade, Rob and the team at Blade have built a world-class passenger experience that demonstrates the value of vertical lift,” said Joby CEO JoeBen Bevirt. “With access to the infrastructure they have secured and the loyal customer base they have developed, we will be in the best possible position to launch our quiet, electric aircraft as soon as certification is secured.”

Blade flew more than 50,000 passengers in 2024 from a network of 12 terminals, including locations at John F. Kennedy International Airport, Newark Liberty Airport, and Wall Street.

Blade’s medical division isn’t part of the transaction and will remain a separate public company. It will partner with Joby on medical transportation, the companies said.

The deal is expected to close in the coming weeks.

Write to Nate Wolf at nate.wolf@barrons.com