SLB To Acquire Kelvion, Expanding Data Center Cooling
SLB to Acquire Kelvion will expand its Data Center Solutions and thermal management scale and may shift trader positioning ahead of regulatory approval.
KEY TAKEAWAYS
- Deal values Kelvion at about $4.1 billion enterprise value including assumed debt.
- Combined data center revenue is expected to exceed $2.0 billion pro forma in 2026.
- SLB expects about $120 million in annual EBITDA synergies within three years.
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SLB said on Aug. 31, 2026, it agreed to acquire Kelvion, a global provider of thermal-management and heat-exchange technologies, in a deal the company said will expand its Data Center Solutions business and deepen its role in data-center infrastructure.
Deal Terms, Ownership, and Closing
SLB agreed to buy Kelvion for about $3.4 billion in cash and will assume roughly $0.7 billion of debt, valuing the business at approximately $4.1 billion on an enterprise-value basis. Apollo-managed funds hold the majority stake in Kelvion, while funds advised by Triton own a minority interest that will also transfer to SLB. This ownership split will influence the closing mechanics as the transaction moves toward completion.
The deal is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.
Scale, Synergies, and Earnings Impact
SLB said the acquisition strengthens its Data Center Solutions business by adding critical thermal-management technologies and expanding its role in data-center infrastructure. The combined SLB and Kelvion data-center businesses are expected to generate more than $2 billion in revenue and about $300 million in adjusted EBITDA on a 2026 pro forma basis.
The transaction implies roughly 11 times estimated 2026 EBITDA before synergies and about 8.5 times including expected annual run-rate synergies. SLB expects approximately $120 million in annual EBITDA synergies within three years, which management identified as a key part of the financial rationale.
An excerpt from an SEC filing indicated the acquisition is expected to be accretive to earnings per share and free cash flow per share within the first 12 months after closing.
"The acquisition strengthens SLB’s Data Center Solutions business with critical thermal management technologies," the company said in its press release.
