Joby Aviation (NYSE:JOBY) confirmed on Monday that it has entered into a definitive agreement with Blade Air Mobility (NASDAQ:BLDE) to purchase the company's urban air mobility passenger business. Blade's medical division was not included in the transaction and will remain a separate public company.

Joby has acquired helicopter ride-share company Blade Air Mobility in a $125 million deal, opening up access to air mobility services in key urban markets.

Joby Aviation Inc. said it plans to buy the helicopter rideshare business of Blade Air Mobility Inc. for as much as $125 million in stock or cash as the electric aviation firm seeks to expand its battery-powered air taxis into a ready-made market for its aircraft.