Joby Aviation Inc.has announced its plans to acquire the helicopter ride-share business of Blade Air Mobility Inc.for a reported $125 million in either stock or cash. The move comes as Joby, a pioneer in electric aviation, looks to expand its battery-powered air taxis into an established market for its aircraft.

This acquisition includes all of Blade’s passenger operations in both the United States and Europe, as well as the Blade brand. Bloomberg had previously reported on the potential deal. However, Blade’s medical division will remain a separate public company and will rebrand while collaborating with Joby on medical transportation.

Following the news, Joby’s shares rose by 18. 8% while Blade’s saw a surge of 17. 2%. The transaction is set to be finalized in the coming weeks, according to a statement from Joby.

Blade, which offers per-seat helicopter trips from New York City to nearby airports and resorts, went public in 2021 through a merger with a special purpose acquisition company. However, the company has yet to report an annual profit since its listing. Its shares have also fallen by 10% this year, resulting in a market value of $309 million.

With backing from Toyota Motor Corp. , Joby aims to have five aircraft in the final phase of certification next year. This will allow them to begin commercial flights in early 2026. The company, which is currently valued at $13. 6 billion, also recently announced plans to double production capacity at its plant in Marina, California. This will enable them to manufacture up to 24 aircraft per year.

According to Joby, Blade has successfully flown over 50,000 passengers in 2024 through their network of 12 urban terminals. While Joby plans to carry its first passengers in Dubai next year, the acquisition of Blade will allow them to expedite their commercial efforts by utilizing Blade’s existing infrastructure and customer base.