Kodiak Gas Services, Inc. announced today that it has completed its acquisition of Distributed Power Solutions, LLC, a provider of turnkey distributed power generation solutions. The deal closed on April 1 2026 for $587 million in cash and the issuance of approximately 2.4 million Kodiak common shares, valuing the transaction at roughly 7.4 times DPS’s estimated 2026 full‑year adjusted EBITDA.
The acquisition expands Kodiak’s platform beyond its core contract compression services into the distributed power generation market, a sector that is growing rapidly as data‑center operators and other digital‑infrastructure customers seek reliable, scalable power amid grid constraints and long lead times for new generation equipment. By adding DPS’s 384 MW fleet, Kodiak now offers a broader portfolio of energy‑delivery solutions that can be deployed quickly and maintained by its existing team of over 700 Caterpillar‑certified technicians.
Synergies are expected to be significant. Kodiak’s expertise in operating and maintaining large‑horsepower engines aligns closely with DPS’s fleet, allowing the company to leverage its technical workforce to improve reliability and reduce operating costs. The combined entity will also benefit from cross‑selling opportunities to Kodiak’s existing oil‑and‑gas customers and to new digital‑infrastructure clients, creating a more diversified revenue stream.
Financially, the transaction is immediately accretive to earnings and discretionary cash flow per share, and it extends the duration and stability of Kodiak’s contracted cash flows. The deal’s valuation—$675 million in total consideration—reflects a premium that underscores the strategic fit and the expected long‑term value creation from the expanded service offering.
Management highlighted the strategic fit in a statement: “Distributed power is a natural extension of our large‑horsepower operations skill set and meaningfully enhances our ability to deliver critical energy infrastructure solutions to our oil and gas customers, while opening new avenues of growth in the fast‑growing digital‑infrastructure end market.” DPS president Scott Milligan added, “This transaction represents an important milestone for DPS. We have built a scaled, high‑quality fleet and a strong operating platform, and Kodiak is a natural platform to launch our next phase of growth.”
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