Generac Soars on $8 Billion Amazon Deal
Generac Holdings Inc. (NYSE:GNRC) shares surged by 33% in premarket trading on Thursday after announcing a data-center supply agreement with Amazon.com, Inc. (NASDAQ:AMZN).
The deal includes a warrant for up to 1.69 million Generac shares at $200.93 per share, representing a potential investment of as much as $8 billion.
As part of the agreement, initial generator deliveries are expected to total $2.4 billion in 2027 and 2028, with Amazon's wholly owned subsidiary receiving a warrant to purchase up to 1,693,745 shares of Generac common stock at $200.9266 per share.
Amazon may exercise the warrant through either a cash or cashless exercise on or before September 16, 2033, subject to vesting requirements and other conditions under the Warrant and Transaction Agreement.