Nextpower stock hits record after $365M Prevalon deal

Nextpower announced an agreement to acquire battery-storage firm Prevalon Energy for up to $365 million, sending its shares to a record high. The stock rose as much as 14% to about $156.50 following the announcement.

The transaction will add Prevalon’s utility-scale battery energy storage systems and energy management software to Nextpower’s solar technology platform. The companies expect the deal to close in the second quarter, subject to regulatory approval.

Prevalon has deployed more than 6 gigawatt-hours of storage worldwide and reported 1.3 gigawatts of firm supply contracts tied to AI and hyperscaler deployments. The company works with several unnamed cloud computing providers.

Nextpower said the purchase will be funded with a mix that includes approximately $1.6 billion in cash plus additional borrowing. The company described the acquisition as its largest since separating from Flex in 2024.

Wall Street analysts raised price targets on Nextpower after the announcement. Northland set a target of $162, Jefferies moved its target to $159, RBC Capital Markets to $149, and UBS raised its target to $170 from $140. Jefferies characterized the transaction as the company’s single largest deal since the 2024 spin-off, by a substantial margin. UBS highlighted Nextpower’s potential to expand into storage and power conversion products while noting near-term integration and logistics costs.

Market interest in renewable energy and storage has returned in part because of rising electricity use tied to AI computing and higher fuel costs following recent disruptions to oil flows. RBC wrote that commentary from renewable firms since the Iran conflict began has been broadly constructive. Consultancy Wood Mackenzie projected that up to 80 million electric vehicles could enter the global market by 2030 as one possible outcome of those developments.

Battery energy storage systems store electricity when supply exceeds demand and release it during peak use, helping to stabilize renewable generation and provide backup power. Nextpower plans to integrate Prevalon’s storage hardware and software with its existing products to supply both renewable generation and grid-scale storage for commercial and data center customers.