Kodiak Gas Services announced it has entered into a definitive agreement to acquire Distributed Power Solutions, a turnkey provider of distributed power generation, in an equity-and-cash transaction valued at approximately $675 million, subject to customary adjustments.
Kodiak said the purchase price includes $575 million in cash and the issuance of 2,401,278 shares of Kodiak common stock, valued at roughly $100 million. Kodiak expects the transaction to close in early April 2026, subject to regulatory approvals and other customary closing conditions, including the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Act.
Kodiak framed the deal as a strategic expansion that leverages its core competency operating large-horsepower engines while extending its reach into distributed power, including demand tied to digital infrastructure customers. Kodiak said DPS’ fleet totals about 384 megawatts of distributed generation assets driven by a mix of Caterpillar reciprocating engines and turbines, and that Kodiak’s operational and maintenance capabilities should support reliability and monitoring improvements across the acquired platform.
Kodiak also highlighted the financial profile of the acquisition, stating the transaction value equals approximately 7.4x DPS’ estimated 2026 full-year adjusted EBITDA and that the transaction will be immediately accretive to earnings and discretionary cash flow per share. Kodiak added that DPS expands its customer exposure through contracted cash flows, including a contract portfolio featuring 100 MW serving a large data center operator with 99.9% reliability for more than a year. Kodiak said it expects “bring your own power” solutions to support longer-duration distributed power contracts and extend the average life of its contract portfolio.
Kodiak said DPS’ management team will join the company after closing, and characterized the combination as a natural fit given both organizations’ focus on safety, reliability, and execution.
Support: Intrepid Partners is serving as Kodiak’s exclusive financial advisor and Sidley Austin as its legal advisor. Morgan Stanley is serving as DPS’ exclusive financial advisor, with Jones Walker as legal counsel to DPS and Winston & Strawn as legal counsel to one of the seller parties.
KEY QUOTES
“Distributed power is a natural extension of our large horsepower operations skillset 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. I commend Scott and the entire DPS team for their many successes to date, and I’m thrilled to welcome them to Kodiak.”
“Distributed power demand is growing rapidly. We believe that the speed-to-deployment and competitive pricing relative to an increasingly constrained power grid make distributed power an attractive option for primary, long-term power. Kodiak is committed to powering our critical energy future, and I’m confident that adding DPS will further our goal to help provide safe, reliable, and affordable energy to the world.”
Mickey McKee, President and Chief Executive Officer, Kodiak Gas Services
“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. Our shared focus on safety, reliability, and execution positions the combined organization well to serve customers and create long-term value.”
Scott Milligan, President, Distributed Power Solutions
