Nikola Corp has agreed to purchase battery provider Romeo Energy Inc. for about $144 million in inventory, the electric truck maker mentioned on Monday, in a transfer that can assist jumpstart its efforts to make battery packs.
The supply values Romeo Energy at 74 cents on a per-share foundation, or a 35 % premium to the inventory’s Friday shut. The corporate’s shares have been up 22 % in buying and selling earlier than the bell.
Romeo Energy is without doubt one of the firm’s battery suppliers for its prototype electrical vans together with LG Vitality Answer and Proterra Inc.
Nikola will be capable to speed up the event of its EV platform with the acquisition of Romeo Energy, Chief Government Officer Mark Russell mentioned in an announcement.
The corporate mentioned in June it was evaluating the choice of creating its personal battery packs in 2024 to spice up volumes and cut back prices.
Battery materials prices have risen over the previous few months, exacerbated by the Russian invasion of Ukraine forcing electrical automobile makers to lift costs.
The truck maker mentioned that it will present Romeo Energy with $35 million in interim funding to facilitate continued operations.
