Joby Aviation has agreed to acquire defense tech firm Resonant Sciences for $500 million to expand its government revenue. Shares of the pre-profit eVTOL developer fell 4-6% as investors reacted to the significant cash outlay.
Joby Aviation, a U.S.-based developer of electric vertical take-off and landing (eVTOL) aircraft, has announced a definitive agreement to purchase defense technology firm Resonant Sciences for approximately $500 million. The transaction is structured as a mix of $450 million in cash and $50 million in Joby common stock, with a projected closing date in the first half of 2027, subject to regulatory approvals.
Following the announcement, shares of Joby Aviation (NYSE: JOBY) declined by 4% to 6.5%. Investors appear to be weighing the strategic benefits against the immediate use of a large cash reserve, particularly as the company is currently in a capital-intensive phase and has not yet reached commercial profitability. Since Joby is listed on the New York Stock Exchange, Indian investors typically access the stock through international brokerage platforms rather than domestic exchanges like the NSE or BSE.
Strategic Shift to Defense
The acquisition reflects a growing trend among electric air taxi manufacturers to pursue defense contracts as a way to generate revenue while their commercial air taxi services await full regulatory certification and mass-market adoption. Joby intends to consolidate its existing hybrid and autonomous flight initiatives into a dedicated defense unit operating under the Resonant Sciences name. This unit will be based in Dayton, Ohio, and will focus on specialized radio-frequency and mission systems designed for U.S. national security clients.
Operational Focus
Management stated that this move is designed to create operational clarity. By shifting defense-related work to a dedicated entity, Joby aims to allow its commercial division to remain focused solely on the rigorous testing and certification requirements for its passenger-carrying electric aircraft. The combined organization will also leverage approximately 1 million square feet of manufacturing, integration, and testing space in the Dayton area, which the company believes will support faster development cycles for its various technology programs.
Investor Risks and Considerations
While the deal provides Joby with immediate exposure to defense technology, it introduces several risks for shareholders to monitor. First, the company is still burning cash to fund its core commercial operations. Spending $450 million in cash on an acquisition reduces the financial cushion available for its primary business. Second, successfully integrating a defense technology firm into a commercial aviation company requires complex operational alignment. Finally, the defense sector carries its own unique risks, including a heavy reliance on government contract cycles, budget fluctuations, and specific regulatory compliance standards that differ significantly from commercial aviation.
Moving forward, investors will likely track the company’s cash burn rate, the timeline for the acquisition to close, and evidence that the new defense unit can secure and execute on government contracts without distracting from the commercial aircraft development goals.