Archrock has agreed to buy HiVolt Energy Holdings in an all-cash transaction valued at up to $450 million, combining HiVolt’s prime power microgrid platform with Archrock’s natural-gas compression business. The deal includes a $415 million upfront payment and as much as $35 million in milestone-based earnouts, Archrock said.
Archrock said the acquisition will broaden its energy infrastructure offerings and add prime power microgrid solutions for new and existing oil and gas customers. Those solutions are supported by long-term power purchase agreements, the company said.
The transaction is expected to be immediately accretive to earnings per share and cash available for dividend per share. Archrock plans to fund the upfront payment through its ABL credit capacity and said the transaction is expected to be debt free.
After the deal closes, HiVolt will operate as a separate business segment within Archrock. Archrock plans to retain HiVolt’s organization, personnel, operations and presence in Midland, Texas, while expanding the business nationwide.
The boards of both companies unanimously approved the deal. It is expected to close early next year.
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