Nikola Acquires Romeo Power, Brings Battery Pack Engineering and Production In-House

Nikola's acquisition of Romeo Power is a strategic move for Nikola that will bring the company's battery and BMS engineering capabilities in-house. It is expected to accelerate Nikola’s product development, increase range and charge rates, and improve customer experiences.
Nikola's acquisition of Romeo Power is a strategic move for Nikola that will bring the company's battery and BMS engineering capabilities in-house. It is expected to accelerate Nikola’s product development, increase range and charge rates, and improve customer experiences.
Nikola

Nikola Corporation said it will acquire Romeo Power in an all-stock transaction.

The proposed exchange ratio implies a consideration of $0.74 per Romeo share and represents an approximately 34% premium to Romeo's July 29, 2022 closing share price and values 100% of Romeo's equity at approximately $144 million.

Headquartered in Cypress, California, Romeo is an energy storage technology company focused on designing and manufacturing lithium-ion battery modules and packs for commercial vehicle applications. As Romeo's largest customer, Nikola expects the acquisition will allow for significant operational improvement and cost reduction in battery pack production. The addition of Romeo's battery and battery management system (BMS) engineering capabilities are also expected to support accelerated product development and improved performance for Nikola customers.

"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. "Given our strong relationship with Romeo and ongoing collaboration, we are confident in our ability to successfully integrate and deliver the many expected strategic and financial benefits of this acquisition. We look forward to creating a zero-emissions future together."

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