Blade to Sell Passenger Division to Joby Aviation

Rebranded Strata to Focus Solely on Medical Logistics and Services

Blade Air Mobility has announced it will sell its passenger division to Joby Aviation for up to $125 million. The move marks a major shift for Blade, which will now focus entirely on its growing medical transport and logistics business. The restructured company will rebrand as Strata Critical Medical and continue operating as a publicly traded entity.

Blade Transitions to a Medical-Only Business

Once the deal closes, Blade’s medical division will remain independent and concentrate on providing time-critical logistics services to hospitals and healthcare providers across the United States. This includes the work of Trinity Medical Solutions, a Blade subsidiary and one of the country’s largest air transporters of human organs for transplant.

“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.,” said Blade Founder and CEO Rob Wiesenthal. “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.”

Joby Acquisition Includes Brand and Lounges

The sale to Joby includes Blade’s U.S. and European passenger operations, brand, and terminal infrastructure. The passenger division will continue to operate as a standalone business under Joby’s ownership.

As part of a long-term agreement, Strata will gain access to Joby’s electric aircraft for medical missions. Joby’s eVTOL aircraft, designed to be quieter and less expensive to operate than helicopters, are expected to provide Strata with a competitive advantage.

“Blade’s mission since inception has been to accelerate the transition from traditional rotorcraft to electric aircraft,” said Wiesenthal. “There is no stronger company than Joby to help make this mission a reality.”

Leadership Changes and Financial Impact

Wiesenthal will join Joby as CEO of Blade Air Mobility and become Chairman of the Board of Strata. Blade’s CFO Will Heyburn and President and General Counsel Melissa Tomkiel will become Co-CEOs of Strata, while continuing in their existing roles. Eric Affeldt, Blade’s current Chairman, will serve as Lead Independent Director.

“This divestiture allows us to focus entirely on Medical, our fastest growing and most profitable business line,” said Heyburn. “Following the close, Strata will be a pure-play, contractual medical business operating in rapidly growing markets that are not correlated with the overall macro environment.”

Tomkiel emphasized Strata’s commitment to its healthcare clients: “We will remain relentless in supporting our customers, all of whom are engaged in life-saving work every day. Our 100% contracted customer retention rate over the last twelve months is a testament to this unwavering commitment.”

Deal Structure and Next Steps

The deal with Joby includes up to $125 million in total consideration, which may be paid in cash or Joby stock. This amount includes up to $35 million in earnouts based on performance and retention milestones. The sale is expected to have a neutral impact on Adjusted EBITDA and Free Cash Flow, with approximately $7 million in annual cost savings supporting the transition.

Blade’s Board of Directors created a Transaction Committee of independent directors to evaluate the sale. UBS Investment Bank is serving as the exclusive financial advisor, and Simpson Thatcher & Bartlett LLP is acting as legal counsel.

A new stock ticker for Strata will be announced after the transaction closes, which is expected in the coming weeks.

For more information, visit www.blade.com or www.jobyaviation.com.