Nextpower to acquire Prevalon Energy for up to $365 million

NEW YORK: Nextpower (Nasdaq: NXT) said it has agreed to acquire Prevalon Energy, a U.S.-based joint venture between Mitsubishi Power Americas and EES, for total consideration of up to $365 million in cash and stock, excluding cash to be acquired. The deal is expected to close in the second quarter of fiscal 2027, subject to customary antitrust and regulatory approvals.

The acquisition extends Nextpower’s technology platform into battery energy storage systems and intelligent controls for critical power infrastructure. The company projects global demand for BESS outside China could reach $35 billion by 2030, with the U.S. market representing up to $15 billion, a statement said.

Nextpower raised its fiscal 2027 outlook in connection with the transaction. The company now expects revenue of $4.0 billion to $4.4 billion, up from a prior forecast of $3.8 billion to $4.1 billion. Adjusted EBITDA is projected at $845 million to $930 million, compared with $825 million to $900 million previously.

“Prevalon was the perfect choice for Nextpower to expand into BESS,” said Markus Wilhelm, founder and CEO of Strata Energy, an early mover in BESS that has delivered more than a dozen utility-scale projects since 2018. “Both companies are technology focused and understand power, utilities, and complex use cases for customers.”

Prevalon’s BESS hardware and software platform addresses challenges for utility-connected and self-powered AI data centers, including inertia support, grid stabilization, contingency management and GPU workload smoothing.

“Many of our customers have rapidly expanded their storage programs and asked us to extend Nextpower’s platform into power conversion and BESS,” said Dan Shugar, founder and CEO of Nextpower. “Prevalon is already engaged with large hyperscalers with a lean, seasoned team that has a solid track record delivering BESS for utilities and IPPs.”

Prevalon’s technology supports AI data centers, private grids, grid-connected storage and industrial power systems. Its Hybrid Power Stabilizer manages rapid load changes, while HD5 DC block and newly released HD5 AC block products provide modular storage building blocks supported by insightOS controls and monitoring.

“Prevalon shares Nextpower’s relentless focus on innovation, quality, reliability and customer success,” said Tom Cornell, president and CEO of Prevalon Energy. “Our customers will benefit from doing business with a reliable, investment-grade partner with decades of experience in power generation and management.”

The deal follows Nextpower’s earlier agreement this month to acquire complementary power conversion technology. Nextpower will host an investor conference call Wednesday at 2 p.m. PT/5 p.m. ET.

Based in the U.S., Nextpower designs and delivers energy technology platforms for utility-scale solar power plants.