Joby Aviation to Go Public via SPAC Merger

Joby Aviation, a company dedicated to the development of a fully electric, vertical take-off and landing (eVTOL) passenger aircraft for over ten years, will transition into a publicly traded entity. This will be achieved through a merger with Reinvent Technology Partners, a special purpose acquisition company (SPAC).

Reinvent Technology Partners is backed by prominent investors, including Reid Hoffman, the co-founder of LinkedIn, and Mark Pincus, the founder of Zynga.

Financial Details of the Merger

Upon listing on the New York Stock Exchange, the resulting company will possess a pro forma implied valuation of $6.6 billion. The transaction will provide Joby with $1.6 billion in cash proceeds.

This funding comprises $690 million currently held in Reinvent’s trust and an additional $835 million secured from private investors. These investors include The Baupost Group, BlackRock managed funds, Fidelity Management & Research LLC, and Baillie Gifford.

Furthermore, a $75 million convertible note from Uber will be exchanged for common stock, valued at $10 per share.

Shareholder Alignment and Future Growth

Unlike typical blank-check mergers, this agreement incorporates a five-year lock-up period for all significant shareholders, encompassing those on the SPAC side. This measure is designed to foster substantial long-term commitment.

An earnout structure is also included, with full vesting contingent upon the share price reaching $50 per share. This milestone would represent a market capitalization exceeding $30 billion.

Plans for Capital Deployment

Joby intends to utilize the newly acquired capital to facilitate the commencement of passenger service, currently projected for 2024.

The company is actively pursuing both aircraft certification and the establishment of manufacturing facilities, with progress already underway in both areas.

Regulatory and Manufacturing Progress

Joby has reached an agreement with the Federal Aviation Administration (FAA) regarding a “G-1” certification basis for its aircraft. This outlines the specific requirements necessary for commercial operation certification.

Construction of a 450,000-square-foot manufacturing facility, collaboratively designed with Toyota, is slated to begin later this year.

Historical Investment and Acquisitions

Prior to the SPAC agreement, Joby garnered significant attention and investment as it advanced its eVTOL technology. Toyota emerged as a key supporter and partner, spearheading a $620 million Series C funding round in January 2020.

In early 2021, Joby completed the acquisition of Uber’s air taxi initiative, Elevate, as part of a multifaceted deal. Uber transferred Elevate to Joby Aviation and simultaneously invested $75 million into the startup, alongside an expansion of their existing partnership.

This $75 million investment supplemented a prior, undisclosed $50 million investment from Uber during Joby’s Series C funding round, bringing Uber’s total investment to $125 million.

Before initiating its pursuit of becoming a publicly traded company, Joby Aviation had successfully raised $820 million in funding.

Note: This article has been updated to clarify that the lockup period applies to all major shareholders.