05:56 PM EDT, 07/22/2024 (MT Newswires) -- Archrock ( AROC ) agreed to acquire contract gas compression services provider Total Operations & Production Services for $983 million in cash and stock, the companies said late Monday.

Archrock ( AROC ) will issue 6.87 million new common shares to the sellers and fund the $826 million cash portion of the deal through equity and debt. Total Operations is a portfolio company of investment funds managed by affiliates of Apollo Global Management ( APO ) .

Archrock ( AROC ) expects the deal to expand in the Permian Basis will be more than 10% accretive to per-share earnings and more than 20% accretive to cash available for dividends in 2025, Chief Executive Officer Brad Childers said.

The deal is expected to close by the end of 2024, the companies said.

Separately, Archrock ( AROC ) said it launched a public offering of 11 million common shares to help fund the deal.

Underwriters will have a 30-day overallotment option to acquire up to 1.65 million additional shares, the company said.

Archrock ( AROC ) shares slumped 7.7% in after-hours trading.

Price: 21.56, Change: -1.79, Percent Change: -7.67