Nextpower acquires Prevalon Energy

Nextpower has announced the acquisition of Prevalon Energy in a deal valued up to $365 million, making a strategic entry into the battery energy storage systems (BESS) and AI data center power markets. This acquisition positions Nextpower to diversify its portfolio beyond its traditional focus on solar infrastructure, expanding into energy storage and management software.

Prevalon Energy, based in the United States and a joint venture between Mitsubishi Power Americas and EES, has established itself in the global energy storage market with over 6 GWh of deployed systems. The company holds firm supply contracts totaling 1.3 GW, serving utility-scale and AI-driven data center infrastructure. Their systems offer solutions for grid stability and backup power, catering to a range of critical applications across diverse industrial sectors.

This acquisition is set to enhance Nextpower's capabilities as a comprehensive power technology provider. It builds on recent strategic moves, including the acquisitions of Zigor Corporation and Apex Power assets, which brought power conversion systems into their portfolio. Collectively, these endeavors equip Nextpower with a robust suite of offerings spanning solar generation, power conversion, battery storage, and sophisticated energy management solutions.

With this transaction, Nextpower has revised its fiscal year 2027 outlook, raising its revenue projection to between $4.0 billion and $4.4 billion, up from the previous estimate of $3.8 billion to $4.1 billion. The company's adjusted EBITDA forecast was also increased to a range of $845 million to $930 million, compared to an earlier target of $825 million to $900 million. The acquisition is anticipated to be accretive, bolstered by the growing demand in the battery storage market which could reach $35 billion globally by 2030, with the U.S. alone representing a significant $15 billion opportunity.

Looking forward, the deal is slated to close in Nextpower's fiscal second quarter of 2027, pending customary regulatory approvals. As AI-driven data center demands surge, Nextpower positions itself to capitalize on this trend, expanding its platform capabilities in response to evolving customer needs. CEO Dan Shugar highlighted that Prevalon’s technology would enable Nextpower to deliver integrated power solutions, particularly in AI data center power applications.