Generac, Amazon Ink $2.4 Billion Generator Supply Deal

Generac, a US-based power equipment maker, has entered into a long-term agreement to supply backup generators for Amazon's data centers. The deal is expected to generate around $2.4 billion in initial deliveries by 2027 and 2028.

In connection with the agreement, Generac issued a warrant to Amazon allowing it to acquire up to 1.69 million shares of the generator maker's stock at $200.93 per share. The remaining shares will vest based on Amazon's purchases of backup generators, up to $8 billion in aggregate payments.

The warrant represents nearly 3% of Generac's outstanding shares and is exercisable through September 2033. This deal marks another instance where a major tech company has received warrants tied to its infrastructure buildout.