Joby Aviation said on Tuesday it would buy defense technology company Resonant Sciences for about $500 million, as it looks to scale its business in a growing defense market.
Electric vertical take-off and landing aircraft (eVTOL) companies are focusing more on the military market as commercial development has taken longer than expected and defense spending has ramped up, driven by wars in Ukraine and the Middle East.
Here are some more details:
Joby said it will continue developing its air taxi eVTOL and will move its defense programs, including hybrid and autonomous VTOL projects, under Resonant Sciences.
Dayton, Ohio-based Resonant designs, manufactures and delivers advanced radio-frequency and mission systems for U.S. national security customers.
Its systems "help aircraft see, communicate, and operate in complex environments," Joby CEO JoeBen Bevirt told Reuters.
"So, this allows our commercial team to be laser focused on delivering on the air taxi mission," while potentially opening new markets for Joby by pairing its products with Resonant's technologies, Bevirt said.
Shares of Santa Cruz, California-based Joby fell 6.5% in premarket trading.
Joby expects to fund the deal with about $450 million in cash and $50 million in its common stock.
The deal, expected to close in the first half of 2027, will give the combined company about 1 million square feet of manufacturing, integration and testing space across the Dayton region.
Upon closing, Resonant will become Joby's dedicated defense business and include its hybrid aircraft and autonomy technologies, while Joby's commercial aircraft business will remain focused on its electric air taxi initiatives.
