3M is expanding its commercial relationship with Amazon, issuing the company a warrant to buy up to 3.2 million shares at a price of $164.89.

The company on Monday said it had entered an expanded strategic commercial relationship with an Amazon subsidiary, while granting the warrant to a separate subsidiary.

Some 85% of the shares covered by the seven-year warrant will vest as Amazon pays for data center products from 3M, including optical connectivity products, with the full amount vesting once Amazon hits $6 billion in payments.

The remaining 15% of the shares vest subject to event-based milestones.

Shares of 3M gained 3.7% to $168 after-hours trading on Monday.