Colorful electric truck startup Nikola Motor (NASDAQ: NKLA) will acquire energy storage specialist Romeo Power (NYSE: RMO) in an all-stock transaction. The deal values Romeo’s equity at approximately $144 million.

Headquartered in Cypress, California, Romeo is focused on designing and manufacturing battery modules and packs for commercial vehicles. As Romeo’s largest customer, Nikola expects the acquisition will allow for significant operational improvement and cost reduction in battery pack production.

“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,” said Nikola CEO Mark Russell. “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.”

“Nikola has been a cornerstone of our development and growth, and this is a natural evolution of our relationship,” said Romeo Power Board Chairman Robert Mancini. “Our products provide critical energy density important to heavy-duty vehicles, combined with safety performance and battery management software.”

Source: Nikola Motor