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

Questions and answers: 

What business is Blade selling and to whom? Blade Air Mobility is selling its passenger division to Joby Aviation for up to $125 million.

What will Blade focus on after the sale? Blade will rebrand as Strata Critical Medical and focus exclusively on time-critical medical logistics, particularly human organ transport.

What is included in the sale to Joby? The deal includes Blade’s passenger operations in the U.S. and Europe, airport lounges, terminals, and the Blade brand.

NEW YORK - Blade Air Mobility in New York announced it has agreed to sell its passenger business to Joby Aviation in Santa Cruz, Calif. for up to $125 million. The deal includes Blade’s U.S. and European passenger operations, airport lounges and terminals, and the Blade brand. Upon closing, the passenger division will operate as a standalone unit within Joby.

Blade will retain its Medical division, which will rebrand as Strata Critical Medical and continue as a publicly traded company focused on time-critical medical logistics. Its existing medical transport unit, Trinity Medical Solutions, will remain a wholly owned subsidiary and continue transporting human organs for transplant across the United States.

As part of a long-term agreement, Strata will have access to Joby’s electric vertical takeoff and landing (eVTOL) aircraft for medical transport. Joby said its aircraft’s low noise profile and expected cost-efficiency will provide a competitive advantage for Strata’s operations.

Joby delivers commercial eVTOL to UAE

Making moves

Rob Wiesenthal, Blade’s founder and CEO, will join Joby as CEO of Blade Air Mobility and become chairman of Strata’s board. Blade CFO Will Heyburn and President and General Counsel Melissa Tomkiel will become co-CEOs of Strata, while retaining their current roles. Chairman Eric Affeldt will become lead independent director.

"Blade’s mission since inception has been to accelerate the transition from traditional rotorcraft to electric aircraft. There is no stronger company than Joby to help make this mission a reality, for the benefit of all our stakeholders, including our fliers, employees, partners, and the cities we serve," said Wiesenthal. "Over the past eight years, our company has successfully leveraged its logistics expertise to build one of the largest air transporters of human organs in the U.S. This transaction enables the company to become laser focused on broadening our offerings across the medical logistics and solutions value chain with a singular strategy and significant deployable capital for acquisitions and organic expansion."

The purchase price includes up to $35 million in performance-based earnouts. Blade’s board formed a transaction committee of independent directors to evaluate the deal. UBS Investment Bank is serving as exclusive financial advisor, with legal counsel from Simpson Thacher & Bartlett LLP.