Archrock, an energy infrastructure company listed on the New York Stock Exchange (NYSE), has agreed to acquire HiVolt Energy in an all-cash transaction valued at up to $450m.
Based in Texas, HiVolt Energy is a provider of electrical infrastructure solutions.
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Archrock, which is also a Texas-based company, provides natural gas compression services to the energy industry.
The agreement includes an upfront payment of $415m at closing, along with earn-out incentives of up to $35m linked to the achievement of certain commercial milestones.
The transaction aims to expand Archrock’s range of energy infrastructure services by combining its existing natural gas compression capabilities with HiVolt’s prime power microgrid platform.
Archrock president and CEO Brad Childers said: “Combining HiVolt’s proven prime power microgrid platform with Archrock’s natural gas compression offerings will transform our company into a broader provider of energy infrastructure.
“HiVolt has built a proven, differentiated platform in the energy microgrid market that complements our core compression business and will enable us to provide additional essential services to customers across the energy value chain, particularly in power-constrained geographies.
“The transaction also offers upside from future industrial markets. We are confident that this transaction will advance our strategic priorities and drive long-term growth and value creation for Archrock shareholders.”
HiVolt currently has over 80MW of contracted prime power capacity supported by long-term power purchase agreements, typically lasting five to eight years.
The company has also secured access to more than 500MW of near-term generation equipment.
Archrock stated that the acquisition is expected to be immediately accretive to its earnings per share and cash available for dividend per share.
The company expects to fund the $415m cash portion of the purchase price using its available credit facility.
The transaction, including the earn-out component, reflects a multiple of approximately 6.1 times the midpoint of HiVolt’s projected 2028 adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) range of $70m to $75m. Around 70% of this EBITDA is supported by contracted and awarded opportunities.
The board of directors of Archrock has approved the deal, which is anticipated to close in early 2027, subject to regulatory approvals and standard closing conditions.
Following completion, HiVolt will operate as a separate business segment within Archrock and will continue to be led by its current CEO, Josh Evans.
Archrock plans to maintain HiVolt’s operations and personnel, including its presence in Midland, Texas, while working to extend its reach across the US.
