SLB has agreed to acquire thermal management company Kelvion for approximately $3.4 billion in cash and assume approximately $700 million of debt, significantly expanding its exposure to AI data center infrastructure.
Kelvion is being acquired from Apollo-managed funds, its majority owner, and funds advised by minority shareholder Triton. The transaction values the company at approximately 11 times estimated 2026 EBITDA before synergies and around 8.5 times EBITDA including expected annual run-rate synergies.
Kelvion is expected to generate approximately $2.3 billion to $2.4 billion of revenue and $350 million to $400 million of adjusted EBITDA in 2026.
Data centers are already its largest and fastest-growing market, with approximately $1.2 billion to $1.3 billion of expected 2026 revenue.
SLB plans to integrate Kelvion’s cooling and heat-transfer technologies with its existing modular manufacturing, engineering, offsite construction and digital capabilities.
SLB’s Data Center Solutions revenue is expected to grow at a compound annual rate exceeding 90% between 2024 and 2026, while cumulative delivered capacity is projected to surpass 2 GW by year-end.
The combined businesses are expected to generate more than $2 billion of pro forma data center revenue and approximately $300 million of adjusted EBITDA in 2026.
By 2028, SLB is targeting $4.5 billion to $5 billion of revenue and $700 million to $800 million of adjusted EBITDA from the combined data center solutions business.
SLB expects approximately $120 million of annual EBITDA synergies within three years and anticipates the transaction being accretive to EPS and free cash flow per share during the first 12 months after closing.
The deal is expected to close in the first half of 2027.
KEY QUOTES:
“AI is driving the most significant infrastructure investment cycle in our lifetime.”
Olivier Le Peuch, Chief Executive Officer Of SLB
“Thermal management is central to that challenge, and this acquisition allows us to address it directly by delivering more integrated cooling solutions.”
Gavin Rennick, President Of SLB’s New Energy And Industrial Business
