GE Oil & Gas has agreed to acquire Cameron’s reciprocating compression division for around $550m.

The reciprocating compression division will become part of GE’s Oil & Gas recently formed downstream technology solutions business, after closing the transaction.

The division, which generated sales of about $355m in 2012, provides reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries.

GE said that the high-speed reciprocating compressors are used in various applications such as gas gathering, gas lift and injection, as well as transmission and storage.

GE Oil & Gas president and CEO Lorenzo Simonelli said the acquisition will benefit employees, customers and shareholders of the company.

"Our increased strategic focus, the buoyant oil and gas sector and our track record in providing high-quality support to customers combined with Cameron’s Reciprocating Compression division will position us for accelerated growth," Simonelli added.