Shares of Blade Air Mobility (NASDAQ: BLDE) are up 30% following a major strategic pivot. The company announced it will sell its passenger division to Joby Aviation for up to $125 million, marking its official transition to a pure-play medical services and logistics business under the new brand, “Strata Critical Medical”.
The deal includes Blade’s U.S. and European passenger operations, lounges, terminals, and branding, all of which will be absorbed by Joby and operated as a standalone unit. In return, Strata will retain access to Joby’s eVTOL aircraft for future medical transport needs, deepening a long-term partnership between the two companies.
Strata will continue to own and operate Trinity Medical Solutions, one of the country’s largest air transporters of human organs for transplant. Blade’s medical segment, which already accounts for the majority of its revenue and adjusted EBITDA, will now be the company’s sole focus. Leadership sees this divestiture as a way to double down on an essential, high-growth market with stable, contracted revenue and non-cyclical demand.
Strata’s go-forward strategy includes expanding its offerings in the medical and time-critical logistics space, bolstered by capital from the sale and cost savings expected to reach $7 million annually. The transaction is designed to be EBITDA and free cash flow neutral, with the potential to unlock new growth through acquisitions and organic initiatives.
The transaction is expected to close in the coming weeks. Blade CEO Rob Wiesenthal will transition to CEO of the passenger division under Joby and serve as Chairman of Strata. CFO Will Heyburn and President Melissa Tomkiel will become Co-CEOs of Strata while maintaining their existing roles.
The post Blade Air Mobility Sells Passenger Division to Joby, Shifts Focus to Medical Logistics as ‘Strata’, appeared first on PRISM MarketView.
