SLB to Acquire Kelvion for $4.1 Billion, Expanding Data Center Infrastructure Business

SLB, the global energy technology company, has agreed to acquire Kelvion, a thermal management provider, in a deal valued at $4.1 billion. The acquisition marks a significant expansion of SLB's data center infrastructure business, as surging investment in artificial intelligence drives demand for cooling, power, and integrated facility solutions.

Under the terms of the agreement, SLB will acquire Kelvion from Apollo-managed funds, the majority shareholder, and minority shareholder Triton, for approximately $3.4 billion in cash, while assuming roughly $700 million in debt. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and other customary conditions.

Kelvion provides thermal management and heat exchange technologies for data centers as well as energy and industrial applications. The company is projected to generate approximately $2.3 billion to $2.4 billion in revenue in 2026, including $1.2 billion to $1.3 billion from data centers, its largest and fastest-growing market segment.

Olivier Le Peuch, CEO of SLB, said, "Artificial intelligence is driving the most significant infrastructure investment cycle of our lifetime. This transaction accelerates our ambition to become an industrial technology partner for the data center industry and helps customers address the increasingly complex infrastructure challenges required to scale AI."

SLB has been expanding its data center solutions business, which combines modular manufacturing, offsite construction, engineering, and digital capabilities. Revenue from this business is expected to grow at a compound annual growth rate of more than 90% between 2024 and 2026, with cumulative delivered capacity projected to exceed 2 gigawatts by the end of 2026.

The acquisition of Kelvion adds cooling and heat transfer technologies to these capabilities. Beyond data centers, Kelvion also supplies technologies for energy and industrial markets, including carbon capture, processing applications, heat pumps, and renewable energy systems.

SLB said it expects combined data center revenue from the two companies to exceed $2 billion in 2026, with adjusted EBITDA of approximately $300 million. By 2028, SLB aims to generate $4.5 billion to $5 billion in revenue and $700 million to $800 million in adjusted EBITDA from the combined data center solutions business.

The company also anticipates annual EBITDA synergies of approximately $120 million within three years of completing the acquisition.