By Senad Karaahmetovic
Nikola (NASDAQ:NKLA) announced today that it has agreed to acquire battery maker Romeo Power (NYSE:RMO) for $144 million.
Nikola’s deal to buy RMO is an all-stock transaction and represents a roughly 34% premium to Romeo’s July 29 closing share price.
“Romeo has been a valued supplier to Nikola, and we are excited to further leverage their technological capabilities as the landscape for vehicle electrification grows more sophisticated. With control over the essential battery pack technologies and manufacturing process, we believe we will be able to accelerate the development of our electrification platform and better serve our customers,” said Mark Russell, Nikola’s Chief Executive Officer.
Romeo Power shareholders will get 0.1186 of a share of Nikola stock.
Moreover, Nikola will provide RMO with $35 million in interim funding so that the latter can continue operating until the transaction is closed.
“As Romeo’s largest customer, Nikola has been a cornerstone of our development and growth, and this is a natural evolution of our relationship,” added Robert Mancini, Romeo Power’s Chairman of the Board of Directors.
Nikola shares are down over 3% in premarket Monday.