Generac, Amazon strike $2.4 billion long-term generator supply deal
GNRC•Generac signs long-term supply deal with Amazon
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.
