Kodiak Gas shares surge 11.13% after-hours after announcing $675M acquisition of Distributed Power Solutions to expand into data center and digital infrastructure markets.

Kodiak Gas Services surged 11.13% in after-hours trading following the announcement of a $675 million acquisition of Distributed Power Solutions, a provider of distributed power generation. The deal, valued at 7.4x DPS’s estimated 2026 EBITDA, is expected to be immediately accretive to earnings and cash flow, enhancing Kodiak’s compression business through synergies and expanding its customer base into high-growth digital infrastructure sectors, including data centers. Management emphasized the strategic alignment with Kodiak’s expertise in large horsepower operations and the growing demand for distributed power due to grid constraints. The transaction, pending regulatory approvals, underscores the company’s expansion into long-term power solutions, positioning it to capitalize on the "bring your own power" trend in energy-intensive markets.