Generac Inks $8 Billion Deal with Amazon on Backup Power

Generac Holdings Inc. has entered into a strategic equity-linked supply deal with Amazon.com Inc.

The agreement involves Generac issuing a warrant to an Amazon subsidiary, giving it the right to purchase up to 1,693,745 shares of Generac's common stock at an exercise price of $200.9266 per share.

Of these shares, 307,954 will vest immediately, while the remaining shares will vest in stages based on up to $8 billion in aggregate gross payments for backup power generators supplied to Amazon data centers.

The long-term supply agreement between Generac and Amazon includes initial deliveries of generators totaling $2.4 billion in 2027 and 2028.