Romeo Systems Inc., a battery maker for electric vehicles, will go public through a merger with special-purpose acquisition company RMG Acquisition Corp. in a $1.33 billion deal, the companies said Monday.
The deal is expected to raise $384 million for Romeo, which includes an investment of $150 million from investors such as The Heritage Group and Republic Services.
Romeo will use the proceeds for capacity expansion and R&D to further develop battery system technologies for commercial vehicles, according to a statement.
Supplier BorgWarner made a $50 million investment in Romeo in May 2019 and the two companies established a joint venture.
“BorgWarner congratulates Romeo Power on the achievement of this important milestone”, said Frédéric Lissalde, CEO of BorgWarner, in a statement. “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.”