Joby Aviation Is Spending $450 Million in Cash to Roughly Double Its Revenue
A $500 million defense deal stands to roughly double the air taxi company's revenue base -- starting in 2027.
Overview
Shares of Joby Aviation (NYSE:JOBY) trade below $7 as of this writing, near their 52-week low, having lost about two-thirds of their value from a 52-week high of nearly $20. Investors, it seems, may be tired of waiting for electric air taxis to turn into meaningful revenue.
The company, meanwhile, isn't waiting. On Aug. 11, Joby announced an agreement to acquire Resonant Sciences, a defense technology company, for about $500 million -- about $450 million in cash plus $50 million in stock. It's a purchase big enough to roughly double Joby's revenue base.
Details
Half a billion dollars is serious money for a company that still spends far more than it takes in. Here's a closer look at what the deal costs -- and what shareholders get.
Source
Originally published at www.fool.com.