Nikola to acquire Romeo Power in a deal worth $144 million

Nikola Corp (NASDAQ: NKLA) on Monday said it is acquiring battery supplier Romeo Power Inc (NYSE: RMO) in a deal worth $144 million.

According to the deal, Nikola would gain control over a key part of Romeo’s supply chain. The electric truck maker bought Romeo at 74 cents per share, a 34% premium to its closing price on Friday.

Shares of Romeo were up about 23% to 68 cents in premarket trading.

The companies said that Nikola will provide Romeo with $35 million in interim funding to continue its operations until the transaction closes.