EV battery pack manufacturer Romeo Systems plans to go public through a merger with a special purpose acquisition company (SPAC) called RMG Acquisition in a $1.33-billion deal, which is expected to close in the fourth quarter of 2020. The combined company will be listed on the NYSE under the symbol RMO.
The transaction is expected to raise $384 million for Romeo Systems (aka Romeo Power Technology). The company plans to use the proceeds for capacity expansion and R&D to further develop battery technologies for commercial vehicles.
Romeo Systems is a five-year-old company based in the Los Angeles area. It provides batteries, in partnership with Tier 1 supplier BorgWarner (which owns 20% of Romeo), mainly to commercial truck manufacturers in North America and Europe.
Romeo has raised $123 million in venture funding from BorgWarner, the Heritage Group and others.