Kodiak Gas Services (NYSE:KGS) has announced a merger with CSI Compressco (NASDAQ:CCLP) that is expected to be completed in Q2 of 2024.

Under the terms of the agreement, Kodiak Gas Services has agreed to give CSI Compressco $854.00 million in stock in exchange for CCLP stock.

About The Companies Involved

Kodiak Gas Services Inc is an operator of contract compression infrastructure in the United States. It manages business through two operating segments namely Compression Operations and Other Services.

CSI Compressco LP is a limited partnership operating in the U.S.

How A Merger Works

A merger happens when a company combines operations with another company. In practice, one company will buy the other company's stock in exchange for its own stock. In some cases, cash is used to pay for the company's stock but usually the companies agree to a stock-for-stock transaction.

Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.