Kodiak Gas Services agreed on 5 February to acquire Distributed Power Solutions, a provider of turnkey distributed power generation, in a cash-and-share deal valued at about $675m.
Why Kodiak Gas Services, Inc. is buying Distributed Power Solutions, LLC
Chief executive Mickey McKee said distributed power was a natural extension of Kodiak's large-horsepower engine expertise and would open growth in digital infrastructure. DPS's roughly 384MW fleet of Caterpillar reciprocating engines and turbines serves upstream and midstream energy customers and includes 100MW for a large data centre operator at 99.9% reliability. Kodiak expects 'bring your own power' demand from data centre developers to lengthen its contract portfolio.
Deal terms and financing
The sellers receive $575m in cash and 2,401,278 Kodiak shares, about $100m, giving a total value of about $675m before costs, or roughly 7.4 times DPS's estimated 2026 adjusted EBITDA. Kodiak expected the deal to be immediately accretive to earnings and discretionary cash flow per share.
Regulatory approvals and timing
Closing required expiry of the US Hart-Scott-Rodino waiting period. Kodiak completed the acquisition on 1 April 2026, paying $587m in cash, including adjustments for generation assets bought since announcement, plus about 2.4 million shares; the business now operates as Kodiak Power Solutions with about 395MW of capacity.
Market context
Kodiak, based in The Woodlands, Texas, is a leading US contract compression provider. Channelchek described the deal as a strategic shift beyond compression into a distributed power market driven by grid constraints.
