Nikola NKLA to acquire Romeo Power RMO

Electric heavy truck maker Nikola said Monday that it struck a $144 million deal to acquire battery pack supplier Romeo Power, giving the company control over a key part of its supply chain.

The all-stock transaction values Romeo at 74 cents per share, a 34% premium to Romeo’s closing price Friday. Romeo’s shares were up about 23% to 68 cents in premarket trading after the news was released.

As part of the deal, Nikola will provide Romeo with $35 million in interim funding to continue its operations until the transaction closes, the companies said. Nikola said it believes the acquisition could save it up to $350 million over the…