California-based EV battery manufacturer, Romeo Systems, Inc. is set to become the latest e-mobility company to list in the U.S. after agreeing a merger with RMG Acquisition Corp., a special purpose acquisition company (SPAC).
The combined value of the company is approximately $1.33 billion and the deal is expected to close in the fourth quarter of 2020.
Upon closing of the transaction, the combined company will be named Romeo Power, Inc. and is expected to remain listed on the NYSE and trade under the new ticker symbol “RMO”.
In May 2019, BorgWarner made a $50 million strategic investment in Romeo Power and entered into a joint venture.
Lionel Selwood Jr., Chief Executive Officer of Romeo Power, says: “We are thrilled to announce this transaction with RMG, as it allows us to further expand our business and to continue innovating and developing new products. Romeo Power’s proprietary battery systems and patented technologies that we have developed over the last four years deliver differentiated energy density, safety, efficiency and cost savings. The need for an economically viable shift toward greener methods of transportation is evident, and we look forward to playing a critical role in the electrification of commercial vehicles globally.”
Robert Mancini, Chief Executive Officer of RMG, adds: “Since our IPO in early 2019, we have evaluated nearly 150 investment opportunities in search of a company with an industry-leading disruptive technology in the industrial or energy sector. Romeo Power stood out as a differentiated leading battery technology company for commercial electric vehicles, a sector that we think is at an inflection point and poised for unprecedented growth.”
Frédéric Lissalde, President and CEO of BorgWarner, comments: “BorgWarner congratulates Romeo Power on the achievement of this important milestone. We look forward to continuing to work with Romeo Power on the expansion of their business and the global growth of the BorgWarner and Romeo Power joint venture.”
Upon completion of the merger, Robert Mancini, along with Philip Kassin, President and Chief Operating Officer of RMG, are expected to join the board of Romeo Power.