Key Takeaways:
- Nextpower acquires Prevalon Energy for up to $365 million in cash and stock.
- The deal adds battery storage and AI data center power capabilities.
- Nextpower raised its FY27 revenue outlook to as much as $4.4 billion.
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Nextpower buys Prevalon for $365M to enter battery storage, AI data centers
Nextpower is buying Prevalon Energy for as much as $365 million, pushing beyond solar into battery storage and AI data center power as the company raises its fiscal 2027 revenue forecast to $4.4 billion.
"The acquisition extends Nextpower's technology platform across BESS and intelligent controls for critical power infrastructure," said Dan Shugar, founder and chief executive officer of Nextpower.
Prevalon, a joint venture between Mitsubishi Power Americas and EES, has deployed more than 6 gigawatt-hours of battery storage systems globally and holds 1.3 gigawatts of firm supply contracts supporting hyperscaler data center deployments. Nextpower expects the deal to close in the second quarter of fiscal 2027, subject to antitrust review.
The global demand for battery energy storage outside China could reach $35 billion by 2030, with the U.S. representing as much as $15 billion of that opportunity, Nextpower said. The company now projects fiscal 2027 adjusted EBITDA of $845 million to $930 million, up from a prior range of $825 million to $900 million.
Nextpower shares jumped 14.1 percent to $156.50 on the announcement, reaching a record high. The stock has gained 66 percent since the start of the year, extending a rally from its February 2023 initial public offering.
Prevalon's technology includes the Hybrid Power Stabilizer for managing rapid load changes and the HD5 DC and AC block products, supported by insightOS monitoring software. The company is already engaged with large hyperscalers for AI data center power supply applications, according to the announcement.
"Prevalon was the perfect choice for Nextpower to expand into BESS," said Markus Wilhelm, founder and CEO of Strata Energy, which was an early mover in battery storage with more than a dozen utility-scale projects since 2018. "Both companies are technology focused and understand power, utilities, and complex use cases for customers."
Analysts responded positively to the deal. UBS raised its price target on Nextpower to $170 from $140, while Northland, Wolfe Research, and Jefferies also lifted their targets while maintaining positive ratings.
The acquisition follows Nextpower's earlier agreement this month to acquire key power conversion technology, continuing its evolution from a solar tracker company into a comprehensive energy technology platform spanning structural systems, electrical infrastructure, storage, controls, and software.
This article is for informational purposes only and does not constitute investment advice.
[1] Nextpower Bets on Battery Storage, AI Data Centers With $365M Prevalon Deal[2] Nextpower Announces Entry into Battery Energy Storage (BESS) and AI Data Center Markets with Definitive Agreement to Acquire Prevalon Energy, Increases Fiscal Year 2027 Outlook[3] Why Are Nextpower (NXT) Shares Soaring Today[4] Nextpower enters BESS, AI data center markets in $365M deal for Prevalon Energy[5] Nextpower stock jumps to record high after $365M Prevalon deal
