Generac, Amazon strike $2.4 billion long-term generator supply deal
Generac, Amazon strike $2.4 billion long-term generator supply deal Sept 16 (Reuters) - U.S. power equipment maker Generac GNRC.N has signed a long-term agreement to supply backup generators for Amazon AMZN.O data centers, with initial deliveries expected to total about $2.4 billion in 2027 and 2028, a regulatory filing showed on Wednesday.
Generac shares surged more than 40% in extended trading.
As part of the deal, Generac issued a warrant to Amazon.com NV Investment Holdings to acquire up to 1.69 million shares of the generator maker's stock at $200.93 per share.
About 307,954 shares vested immediately, while the remaining shares will vest in tranches tied to Amazon's purchases of backup generators, up to $8 billion in aggregate payments.
The warrant is exercisable through September 2033 and represents nearly 3% of Generac's outstanding shares.
Amazon has previously received warrants from suppliers tied to its AI and cloud infrastructure buildout, including hydrogen producer Plug Power and air cargo contractor ATSG.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Arun Koyyur)