Kodiak Gas shares surge 10.14% intraday on $675M DPS acquisition, expanding into data center power generation.

Kodiak Gas Services surged 10.14% intraday after announcing a $675 million acquisition of Distributed Power Solutions, expanding into the data center power generation market. The deal, valued at 7.4x DPS’s estimated 2026 EBITDA, includes $575 million in cash and $100 million in stock, with 384 MW of distributed power assets and existing contracts serving a major data center operator. Management highlighted synergies with Kodiak’s compression expertise, immediate earnings accretion, and entry into high-growth digital infrastructure markets. The move aligns with rising demand for behind-the-meter power solutions amid grid constraints, positioning Kodiak to capitalize on long-term data center energy needs. The transaction, expected to close in early April 2026, was cited as a catalyst for the sharp intraday rally, driven by strategic expansion and contracted cash flow visibility.