SLB Agrees to Acquire Kelvion for $4.1B to Expand Data Center Cooling Capabilities

• SLB has agreed to acquire Kelvion for approximately $3.4 billion in cash plus the assumption of $0.7 billion in debt.
• The transaction values Kelvion at approximately 11 times estimated 2026 EBITDA, or 8.5 times including expected synergies.
• Kelvion is majority owned by Apollo-managed funds, with a minority interest held by Triton.
• The combined entity targets $4.5 billion to $5 billion in revenue for its data center solutions business by 2028.
• SLB expects the acquisition to be accretive to earnings per share and free cash flow within the first 12 months.

SLB has entered into a definitive agreement to acquire 100% of Kelvion, a global provider of thermal management and heat exchange technologies. The transaction is valued at approximately $4.1 billion, comprising $3.4 billion in cash and $0.7 billion in assumed debt. This strategic move aims to integrate critical cooling capabilities into SLB’s rapidly expanding data center infrastructure business. By acquiring Kelvion, SLB seeks to double the revenue opportunity per gigawatt of delivered capacity . The deal reflects the growing industrial demand for efficient thermal solutions driven by artificial intelligence infrastructure .

The acquisition positions SLB to capitalize on the significant infrastructure investment cycle currently fueled by AI development . Kelvion is expected to generate 2026 revenue of $2.3 billion to $2.4 billion, with data centers representing its largest and fastest-growing segment . Data center revenue for Kelvion is projected at $1.2 billion to $1.3 billion for the year . SLB’s own data center solutions business has experienced a compound annual growth rate exceeding 90 percent between 2024 and 2026 . This integration allows SLB to embed thermal management directly into its modular infrastructure offering .

How Does Thermal Integration Reduce Construction Complexity?

Integrating Kelvion’s thermal management technologies with SLB’s modular manufacturing and offsite construction capabilities addresses the increasing complexity of scaling AI infrastructure . The combined entity aims to deliver more integrated infrastructure solutions, reducing onsite construction complexity . SLB projects that this integration will accelerate time to operation by up to 40 percent . This operational efficiency is critical for customers seeking to deploy energy-intensive AI data centers rapidly . The acquisition expands SLB’s addressable market by offering comprehensive, energy-efficient cooling solutions alongside modular construction .

Kelvion’s portfolio spans cooling and heat-transfer applications for data centers, energy, and industrial markets . By incorporating these technologies directly into its modular offering, SLB strengthens its position across the data center value chain . This strategic alignment allows SLB to act as an industrial technology partner to the data center industry . The move complements SLB’s existing engineering services and digital capabilities . It also provides a pathway to more integrated infrastructure solutions that reduce operational friction .

What Are the Financial Synergies and Pro Forma Projections?

SLB anticipates generating approximately $120 million in annual EBITDA synergies within three years through cost efficiencies and incremental revenue opportunities . The company expects the transaction to be accretive to both earnings per share and free cash flow per share in the first 12 months following closing . On a pro forma basis for 2026, the combined entities are expected to generate more than $2 billion in data center revenue . SLB targets revenue of $4.5 billion to $5 billion and adjusted EBITDA of $700 million to $800 million for its combined data center solutions business by 2028 .

The transaction is valued at approximately 11 times estimated 2026 EBITDA before synergies . Post-transaction, SLB will maintain an investment-grade balance sheet with a net debt-to-EBITDA ratio within its target of up to 1.5 times . The deal is expected to close in the first half of 2027, subject to regulatory approvals . Apollo Global Management highlighted that the transaction allows Kelvion to accelerate long-term growth as part of SLB . The sale reflects Apollo’s focus on scaling infrastructure assets aligned with the global energy transition .