Amazon Secures Multi‑Year Generac Generator Supply Deal With Equity Warrants
The SEC filing shows Amazon can buy up to 1.69 million Generac shares through warrants whose remaining vesting is tied to ordered generators with further tranches linked to purchase milestones through 2033.
Overview
- The SEC filing disclosed Wednesday that Generac will supply backup power generators to Amazon Data Services with initial deliveries totaling $2.4 billion scheduled for 2027 and 2028.
- Generac granted Amazon warrants to acquire up to 1.69 million shares at $200.93 each, about 308,000 of which vested immediately while the rest vest as Amazon reaches purchase thresholds through 2033.
- The warrants equal roughly $340 million at the exercise price and represent about 2.6%–3% of Generac’s shares on a fully diluted basis according to company figures and market data.
- Generac shares jumped roughly 33%–40% in extended and premarket trading after the disclosure as analysts issued mixed responses and updated price targets.
- The deal follows Amazon’s recent pattern of pairing large infrastructure contracts with equity options, a structure that helps Amazon lock supplier commitments and gives suppliers sizeable, predictable revenue that could reach up to $8 billion including partner payments.