Kodiak Gas Services, Inc. (KGS), a contract compression services provider, Thursday announced that it has agreed to acquire Distributed Power Solutions, LLC, a turnkey power solutions provider in a cash and equity deal for around $675 million.
As per the agreement, the purchase price consists of $575 million in cash and the issuance of 2,401,278 shares, representing approximately $100 million of Kodiak common stock, to the sellers.
The transaction value is equal to nearly 7.4 times DPS's estimated 2026 full year adjusted EBITDA and is expected to be immediately accretive to Kodiak's earnings and discretionary cash flow per share.
With this acquisition, the company hopes to acquire Distributed Power Solutions or DPS's 384 MW of state-of-the-art distributed power generation assets, expand its customer base into high-growth digital infrastructure companies and deepen Kodiak's relationships with certain upstream and midstream energy customers.
The transaction is expected to close in early April.
In pre-market activity, KGS shares were trading at $44.47, up 4.87% on the New York Stock Exchange.
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