M&A · Industrials · Motor Vehicle Parts & Accessories
Nikola Corp to acquire Romeo Power, Inc.
Announced Aug 1, 2022 · Closed Oct 17, 2022
Deal value$112MEV $71M
Premium34.0%To unaffected price
EV / Adj. EBITDA—2.6x EV / Revenue
ConsiderationAll stock$0.74 per share
Transaction
- Acquirer
- Nikola Corp (NKLA)
- Target
- Romeo Power, Inc.
- Buyer type
- Strategic
- Offer price per share
- $0.74
- Enterprise value
- $71M
- Status
- Closed Oct 17, 2022
Deal protections
- Break fee (target pays)
- $3.0M · 2.7%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Citigroup
- To the target
- Morgan Stanley
- Morgan Stanley fee
- $9.5M
Sector context · Industrials
- Comparable deals
- 73 in the prior 24 months
- Premium
- 34.0% vs. 47.4% sector median
- EV / Adj. EBITDA
- Sector median 11.0x
- Break fee
- 2.7% vs. 2.8% sector median
Timeline
- AnnouncedAug 1, 2022
- Tender offerAug 29, 2022
- ClosedOct 17, 2022
Valuation · fairness opinions
Trading comparables$0.58$0.84
Trading comparables$0.31$0.63
Future share price$0.19$0.30
Future share price$0.22$0.34
Discounted cash flow$0.24$0.35
Offer $0.74
Implied value per Romeo Power, Inc. share by analysis, from Morgan Stanley.