Joby Aviation Makes Massive $500 Million Defense Play. Here's What It Means For Investors.
Joby is flexing beyond air taxis.
Overview
Joby Aviation (NYSE:JOBY) has spent the better part of its life trying to make electric vertical takeoff and landing (eVTOL) aircraft into a real, sustainable business. Now, oddly enough, one of its biggest developments of the year has almost nothing to do with eVTOLs -- at least, not yet.
On Aug. 11, Joby announced that it will acquire defense technology company Resonant Sciences for about $500 million, including about $450 million in cash and $50 million in Joby stock. Resonant, which generated more than $100 million in trailing-12-month revenue, will eventually become Joby’s dedicated defense business. That means the Joby team can continue working on its air taxi service, while the Resonant team works on defense technology, with plenty of potential for cross-pollination between the two sides.
Details
The deal makes Joby a much stronger, more diversified business. But whether it makes Joby a stronger stock is a more complicated question. Let’s take a closer look.
Source
Originally published at www.fool.com.