Key insights
- Generac Holdings (GNRC) stock surged 18% after announcing an $8 billion long-term supply agreement with Amazon.com (AMZN) to provide backup power generators for Amazon data centers. Initial deliveries are valued at $2.4 billion for 2027-2028. Amazon also received a warrant to acquire Generac shares, vesting based on payments received. This deal significantly boosts Generac's revenue outlook and strengthens its relationship with a major tech client.
Investing.com -- Generac Holdings (NYSE: GNRC) shares rose 18% in after-hours trading following the announcement of a long-term supply agreement with Amazon.com to provide backup power generators for Amazon data centers.
Under the terms of the agreement announced Thursday, Generac will supply generators with payments totaling up to $8 billion. Initial deliveries are expected to total $2.4 billion across 2027 and 2028.
As part of the transaction, Generac issued a warrant to Amazon.com NV Investment Holdings LLC, a wholly-owned subsidiary of Amazon, allowing it to acquire up to 1,693,745 shares of Generac common stock at an exercise price of $200.93 per share. Of those shares, 307,954 vested immediately, with the remainder vesting in tranches tied to aggregate gross payments received by Generac and its affiliates from Amazon for backup power generators.