Nextpower Acquires Prevalon Energy, Boosts 2027 Outlook

Nextpower Inc. shares increased significantly Friday after the company announced its definitive agreement to acquire Prevalon Energy. The solar-tracking provider will move into energy storage with this acquisition. Nextpower also stated it would enter the battery energy storage system (BESS) and AI data center markets. Nextpower will acquire Prevalon Energy for up to $365 million. This deal is expected to extend Nextpower's technology platform into next-generation electricity infrastructure. This infrastructure targets energy storage and mission-critical power. Investors view the Prevalon acquisition as providing a credible path into adjacent high-growth markets. The company increased its fiscal year 2027 outlook to $4.0 billion to $4.4 billion in revenue. It also raised its adjusted EBITDA outlook to $845 million to $930 million for the same fiscal year. Shares of Nextpower rose 10% in premarket trading Friday following the announcement. Mizuho raised its price target for Nextpower shares to $130 from $112. This acquisition marks a strategic expansion for Nextpower. The company, previously focused on solar tracking, is now entering the battery energy storage and AI data center markets. This move diversifies its offerings and addresses the power needs of emerging technologies. Investors will monitor how Nextpower integrates Prevalon Energy and executes on its raised fiscal year 2027 outlook. The company's expansion into AI data centers and BESS markets will be a key area of focus. This article is intended for informational purposes only. It does not constitute investment advice.