- The deal is expected to raise $384 million for Romeo
- Romeo Systems will use the proceeds for capacity expansion and research and development to develop battery system technologies for commercial vehicles even further
As per a report by Reuters, Romeo Systems Inc, which makes batteries for electric vehicles, will go public through a merger with blank check company RMG Acquisition Corp in a $1.33 billion deal according to the companies. The report added that the deal is expected to raise $384 million for Romeo. This includes an investment of $150 million from waste hauler Republic Services and The Heritage Group,
The report also said that as per a statement, Romeo Systems, which operates as Romeo Power Technology, will use the proceeds for capacity expansion and research and development to develop battery system technologies for commercial vehicles even further. As per the report, after the deal deal closes, which is expected in the fourth quarter of 2020, the combined company will list on the New York Stock Exchange under the symbol “RMO”.
BorgWarner Inc owns 20 per cent of Romeo Systems
The report said that as per the battery maker’s website, BorgWarner Inc owns 20 per cent of Romeo Systems. Romeo Systems also has a 40 per cent stake in a European battery joint venture with BorgWarner.
As per the report, a special purpose acquisition company (SPAC) is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years. It added that other EV companies with SPAC deals are Fisker, Lordstown Motors and Canoo.
