SLB Buys Kelvion for $3.4B

SLB has agreed to acquire Kelvion, a cooling equipment maker, from Apollo Global for $3.4 billion in cash. The deal is expected to close in the first half of 2027, pending regulatory approvals and other customary conditions.

As part of the acquisition, SLB will assume about $700 million of Kelvion's debt. The company will also acquire funds advised by Triton, which hold a minority interest in Kelvion. Kelvion is majority owned by Apollo-managed funds.

The acquisition is expected to strengthen SLB's data center solutions business with critical thermal management technologies. The company expects the combined data-center businesses to generate $4.5 billion to $5 billion in revenue and $700 million to $800 million in adjusted EBITDA in 2028.

SLB projects approximately $120 million in annual EBITDA synergies within three years of closing. The transaction will be accretive to earnings and free cash flow per share within the first 12 months.

## Why it matters The acquisition comes as demand for power and cooling infrastructure grows due to rapid AI adoption. Data centers require efficient cooling systems to operate, and the acquisition of Kelvion is expected to help SLB expand its offerings in this area. The deal is a significant investment for SLB, and the company expects it to drive growth in its data center business.

## What happens next The deal is subject to regulatory approvals and other customary conditions. If approved, the acquisition is expected to close in the first half of 2027. SLB will then integrate Kelvion's business into its own, with the goal of generating significant revenue and earnings growth in the coming years.