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Nikola to acquire California battery supplier for $144 million

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Posted at 8:37 AM, Aug 02, 2022
and last updated 2022-08-02 11:43:47-04

PHOENIX — Electric vehicle maker Nikola Corp. is planning to purchase a longstanding supplier in a $144 million deal that will bring some battery production power in house.

Phoenix-based Nikola said Monday it intended to purchase Romeo Power Inc., providing a bump in the share prices of both companies in Wall Street trading.

Romeo Power, based in Cypress, California, has supplied both battery modules and packs to Nikola, which is Romeo's largest customer.

Nikola is proposing an all-stock transaction in which Romeo shareholders will exchange their stock for Nikola shares. Nikola is offering 74 cents per Romeo share, a 34% premium on the company’s July 29 closing price, valuing the company at $144 million.

Read more of this story from the Business Journal.