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.