A company known for providing short-distance air travel via helicopters has just announced a deal to expand into a new practice. According to a statement released today, Blade Air Mobility (NASDAQ:BLDE) will be acquiring organ transportation company Trinity Air Medical. It hasn’t taken long for BLDE stock to start rising quickly.
What Happened With BLDE Stock
Since news of the acquisition broke this morning, BLDE stock has shot up faster than most helicopters, rising more than 19% on the day as of this writing. Leading up to today, the company had seen a week of flatlining and declines, sinking 1.9% on the week prior to this morning’s announcement.
The company made its public debut in December 2020 by way of a SPAC merger, just ahead of the SPAC boom that would follow in early 2021.
The combination of these two companies is expected to lead to the construction of the largest organ air transportation system. Organ transit companies may not often make headlines, but the revenues generated by Trinity in 2020 were approximately $16 million. Its reach expands to transplant centers and organ procurement organizations in 16 states across the U.S.
This deal will allow Blade to lend its efficient technologies to an essentially untapped market. It certainly makes sense for BLDE stock to react positively to the news.
Why It Matters
The Covid-19 pandemic has served to highlight many problematic elements within our healthcare and public health systems. A company with the ability to transform and revitalize the ways in which organs are transported could prove as vital as the organs it transports.
The multi-modal organ transit platform resulting from this merger has the potential to save many lives and help hospitals across the country function more efficiently.
Aside from providing helicopters, Blade is uniquely positioned to revolutionize Trinity’s organ transit dealings even further through both drone and electric vehicle aircraft (EVA) technology, an area in which Blade has been an industry pioneer. The need for electric vehicles (EVs) will only grows, creating more opportunity for BLDE stock to rise.
What Comes Next for Blade Air Mobility?
As of now, the skies don’t look too turbulent for BLDE stock. There won’t be any dips in demand for vital organs transits or for electric air transportation, and Blade has taken significant steps to procure its piece of both markets.
Additionally, Blade’s plans to introduce drone technology in the world of organ transportation have the potential to help revitalize the field even more, providing additional reason for investors to evaluate BLDE stock from a bullish perspective.
According to Yahoo Finance, the “acquisition is expected to accelerate revenue growth in Blade’s MediMobility business, which is growing in excess of 60% per year, reducing costs and improving service availability.”
BLDE stock has started gaining altitude as a result of this deal and the way it looks from here, it has plenty of climbing left to do.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
