Nikola to acquire Romeo Power for 74 cents a share or about $144 million in all-stock deal

Electric truck maker Nikola Corp. has agreed to acquire Romeo Power Inc. for 74 cents a share in stock or a total of $144 million, the companies said in a joint statement. Romeo, which is based in Cypress, California, makes storage technology for commercial vehicles that is focused on making lithium-ion battery modules and packs. The price is equal to a 34% premium over Romeo's closing price on Friday. "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 Nikola CEO Mark Russell. The deal is expected to close by end-October. The news sent Romeo shares up 22.8% premarket, while Nikola shares fell 1.5%.

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