Generac Lands $2.4 Billion Generator Deal With Amazon
The deal helps Amazon secure stable power supplies to its data centers.
Generac Holdings (GNRC) stock surged by 20% on Thursday following a regulatory filing that revealed a significant agreement with Amazon (AMZN). The deal entails Amazon.com NV Investment Holdings acquiring up to 1.69 million shares of Generac stock at a price of $200.93 per share. Notably, more than 300,000 shares will vest immediately, while the remaining shares will vest in stages based on Amazon's purchases of backup generators through 2033.
The initial deliveries of backup generators are set to amount to $2.4 billion, with deliveries occurring in 2027 and 2028, as reported by Reuters. Furthermore, additional purchases could potentially reach a staggering $8 billion. This substantial contract is anticipated to bolster Amazon's rapidly expanding artificial intelligence business. Amazon holds the largest share of the global cloud computing market and boasted AI and chips business revenue of over $25 billion in the most recent quarter.
The agreement between Generac and Amazon indicates a strategic partnership aimed at supporting the company's growth in the AI and cloud computing sectors.
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