Why Romeo Power Stock Is Skyrocketing Today After Nikola News

Romeo Power Inc RMO shares are trading higher by 21.82% to $0.67 Monday morning after Nikola Corp NKLA announced it will acquire the company in an all-stock transaction for an implied consideration of $0.74 per share.

What Happened?

Nikola says 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.

What Else?

"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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According to data from Benzinga Pro, Romeo Power has a 52-week high of $7.44 and a 52-week low of $0.44.