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Amazon acquires right to buy stake in fuel cell maker in $600M deal

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Amazon acquires right to buy stake in fuel cell maker in $600M deal Inc. struck a deal worth $600 million to use Plug Power Inc.'s fuel cells and hydrogen technology in its fulfillment network and acquired the option to buy a significant stake in the company.

Under the deal, Amazon received warrants to buy up to 55,286,696 of Plug Power's common shares at about $1.19 per share, which is based on the volume weighted average closing price of Plug Power common shares for the 30 trading days ending April 4.

The warrants will vest based on Amazon’s payment of up to $600 million to Plug Power in connection with Amazon’s purchase of goods and services from the Latham, N.Y.-based company. An adjustment to the exercise price will occur after the first 34,917,912 warrants have vested, and will be based on the volume weighted average closing price, at the time that such warrants vest.

The partnership allows the online retailer to power its industrial equipment such as forklifts at select fulfillment center locations through the GenKey technology, the hydrogen fuel cell maker said April 5.

Revenues associated with the commercial agreements are expected to be around $70 million in 2017, Plug Power said. The companies will also work on technology collaboration, exploring the expansion of applications for Plug Power's line of ProGen fuel cell engines.