Nextpower (NXT) investor relations material

Deal rationale and strategic fit

• Acquisition expands platform into utility-scale battery energy storage systems (BESS), energy management software, advanced controls, and life cycle services, targeting growing demand from AI, data centers, electrification, and grid modernization.

• Enables entry into AI data center power supply and strengthens position in solar plus storage, standalone storage, and distributed energy systems.

• Prevalon's technology and customer base are highly complementary, broadening market reach and deepening value proposition for integrated energy solutions.

• Leverages Prevalon's scaled BESS platform, proven project experience, and integrated solutions to enhance ability to offer storage, controls, software, and lifecycle services for complex power needs.

• Supports evolution toward a comprehensive energy technology platform spanning storage, controls, automation, and software.

Financial terms and conditions

• Total consideration up to $365 million: $150 million cash, $50 million stock, and up to $165 million contingent cash tied to profit targets over four years.

• Inducement grants of up to $100 million in performance stock units for Prevalon owner-managers and $35 million in restricted stock units for employees.

• Transaction expected to close near end of fiscal Q1 or in Q2 FY27, subject to regulatory approvals and customary closing conditions.

• Prevalon expected to close with over $75 million in cash and equivalents.

• Incremental costs of approximately $50 million planned for accelerated entry into the power conversion market.

Synergies and expected cost savings

• Supply chain optimization and integration of engineering, lab, and supply chain capabilities expected to lower costs, improve margins, and accelerate Prevalon's growth.

• Cross-selling opportunities and expanded service offerings leveraging complementary customer bases.

• Customers to benefit from a fully integrated firm power solution, leveraging both companies' technology and market reach.

• No large, unproven cost synergies assumed in deal valuation.

• Growth-led value creation by combining Prevalon's expertise with broader customer reach.