Blade Air Mobility has announced a deal to sell its passenger business to Joby Aviation for up to $125 million. Joby will pay for the acquisition in cash or stock, with potential earnouts of up to $35 million tied to performance. The divestiture is expected to have a neutral financial impact on Adjusted EBITDA and Free Cash Flow, with estimated annual cost savings of $7 million. Strata will focus on providing essential logistics and medical services, with Trinity Medical Solutions continuing as a subsidiary. After the sale, Blade’s Medical division will rebrand as Strata Critical Medical, with new leadership in place. In pre-market trading, Blade Air Mobility is up 29% and Joby Aviation is up 5.30%.

Read more at Nasdaq: Blade To Sell Passenger Business To Joby Aviation For Up To $125 Mln; Stock Up In Pre-market