Generac Signs Long-Term Agreement with Amazon for Data Center Generators
Generac Holdings Inc signed a long-term agreement to supply backup generators for Amazon.com's data centers. The deal is expected to generate approximately $2.4 billion in initial deliveries over the next two years, significantly boosting Generac’s revenue outlook and causing its shares to rise nearly 18% on Thursday morning trading. As part of the arrangement, Generac issued a warrant allowing Amazon to acquire up to 1.69 million shares at an exercise price of $200.93 per share, representing about 3% of outstanding shares. The vesting is tied to future purchases by Amazon under the agreement, with total potential payments reaching up to $8 billion. This partnership aligns with Amazon's broader strategy for expanding its cloud and AI infrastructure through supplier agreements that include performance-linked incentives.
Topics: Amazon Backup Generators Data Centers Generac