The settlement was filed last Friday in Delaware and has yet to be approved by a judge, according to the Wall Street Journal.
The report noted that the vast majority of shareholder lawsuits over deals are dismissed or settle for no additional money.
KKR bought the industrial pumps maker for $76 per share including an equity investment of $1.2bn.
The lawsuit alleged that KKR hired former Gardner Denver CEO Barry Pennypacker to help evaluate the bid and agreed to pay him $1m if the offer was successful.
The investors said in the suit that Pennypacker provided confidential information about Gardner Denver in violation of his severance agreement.
KKR agreed the buyout deal in March last year after Advent International and a partnership between Onex Corp and TPG Capital pulled away from a deal amid disagreements over the due-diligence process.
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