Joby stock hits record high after deal to take over Blade infrastructure in NYC, Europe, and elsewhere

Air taxi company Joby Aviation has reached an agreement to acquire the urban air mobility passenger business from Blade, the helicopter rideshare service, in a deal worth as much as $125 million.

The acquisition includes Blade’s brand and passenger business, which operates in the United States and Europe. The deal will give Joby access to Blade’s infrastructure, routes, and customers as it gears up to launch its eVTOL vehicles in the sky.

Late last year, Joby said it had entered into its final stage of the certification process with the Federal Aviation Administration (FAA), a step it said will pave the way for commercial service. In a press release on Monday, it said gaining control of Blade’s infrastructure will allow it to eventually transition passengers from traditional helicopters to Joby’s air taxis.

Shares of Joby Aviation (NYSE: JOBY) hit a record high of $20.33 in early trading on Monday. Although the air taxi space is still considered speculative, the stock up more than 152% year to date.

Blade Air Mobility (NASDAQ: BLDE) saw its stock price rise around 29% on Monday’s news.

“This is a strategically important acquisition that will support the successful launch of Joby’s commercial operations in Dubai, our subsequent global rollout and our continued leadership in the sector,” JoeBen Bevirt, Joby’s founder and CEO, said in a statement.

As part of the deal, Joy will gain Blade’s network of 12 terminals, including a dedicated lounge and terminal bases at John F. Kennedy International Airport (JFK) and Newark Liberty Airport (EWR), as well spots on Manhattan’s east and west sides and near Wall Street in Lower Manhattan 

Blade’s medical division will rebrand as Strata 

Blade plans to focus its efforts on its medical services and logistics business, which were not included in Joby’s acquisition. 

Blade’s medical division will remain a separate public company and be renamed as Strata Critical Medical (Strata). Joby will become the preferred eVTOL partner to Blade’s organ transport business, and Strata will gain access to Joby’s vehicles.

The deal is expected to close in the coming weeks. A new ticker for Strata will be announced at a later date.