(RMG), BorgWarner Inc. (NYSE: BWA) – Founded by Tesla, SpaceX Engineers, Romeo Power Finds SPAC battery maker

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Romeo Power is the latest electric vehicle related company to go public through a special purpose acquisition company.The SPAC agreement: Romeo Power will be made public via SPAC RMG Acquisition Group (NYSE: RMG), the company said Monday.

The deal aims to raise $ 384 million for Romeo Power, including a $ 150 million PIPE anchored by existing investors and new investors. Republic Services (NYSE: RSG).

The transaction values ​​the company at $ 1.33 billion.

About Romeo Power: Founded by entrepreneur Michael Patterson and former engineers from Tesla Inc (NASDAQ: TSLA) and SpaceX, Romeo Power makes battery technology for electric utility vehicles.

Romeo Power focuses on the design and manufacture of lithium ion batteries for medium and heavy long haul trucks, specialty trucks and buses.

Romeo Power has a joint venture with Borgwarner Inc (NYSE: BWA), which invested $ 50 million in the company in 2019.

Porter Harris joined Romeo Power as chief battery architect after years at Tesla and SpaceX. He is credited as the lead designer of the SpaceX Falcon 9 Rocket battery.

“We have applied technologies developed for space and aerospace applications, and improved them to create innovative products for electric vehicles and stationary energy storage,” Harris said years ago.

Forbes profiled many of the former Tesla employees who joined Romeo in 2017. Romeo said at the time that its battery was more robust, could charge faster, and was easier to build than Tesla’s.

And after: Romeo Power sees a total addressable market of $ 665 billion worldwide, with 17 million electric utility vehicles sold each year.

The total North American addressable market is $ 225 billion, with expected annual sales of 7 million vehicles, according to the company.

John Deere (NYSE: DE), BMW, Nikola (NYSE: NKLA), Groupe Workhorse (NASDAQ: WKHS) and the Paccar Inc (NASDAQ: PCAR) Kenworth brand are customers of Romeo Power.

Investor The Heritage group is committed to converting more than 500 diesel trucks in its fleet into battery electric vehicles using batteries powered by Romeo.

Republic, the second-largest recycling and waste disposal company in North America, plans to enter into a strategic alliance with Romeo, according to Monday’s press release.

Romeo Power said he has $ 300 million in current contract revenue. The company estimates 2023 revenue of $ 765 million. Revenue is expected to reach $ 1.2 billion and $ 1.6 billion in 2024 and 2025, respectively.

RMG Price Action: Shares of RMG Acquisition were down 9.91% to $ 10.36 at the last check on Monday. Shares hit a new high of $ 11.88 on Friday on rumors of the deal.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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