Kuehne+Nagel jumps on long-term Amazon deal for cloud logistics
Shares in Swiss logistics group Kuehne+Nagel surged 5.8%% on news of a strategic collaboration with Amazon. The deal involves Amazon Web Services and covers cloud infrastructure logistics. An insider indicated the Amazon contract generates revenue in the high triple-digit million-dollar range, potentially reaching several billion dollars.
8% after the Swiss logistics group said it has entered into a long-term strategic collaboration with Amazon. The agreement includes Amazon Web Services and covers cloud infrastructure logistics, from construction and equipment deployment to maintenance, upgrades and expansion projects. An insider told Reuters that Amazon currently generates revenue for Kuehne+Nagel in a high triple-digit million-dollar range, which could rise to several billion because of the deal. Vontobel said the agreement underscores Kuehne+Nagel's "strong and growing position" in profitable data centre infrastructure logistics and is likely to further accelerate growth in the segment.
The collaboration is backed by a call option on existing Kuehne+Nagel shares, with vesting tied to commercial milestones and services over up to seven years. The shares were on track for their best day since February 2023, with Monday's rise taking the stock's year-to-date gains to more than 33%.