SLB Expands AI Infrastructure
SLB Agrees to Acquire Kelvion for $4.1 Billion to Expand Data Center Cooling
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Key Points
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The deal values Kelvion at roughly $4.1 billion enterprise value (about $3.4 billion in cash plus roughly $0.7 billion of debt), which SLB says equates to about 11x 2026 EBITDA pre-synergies and around 8.5x EBITDA including expected run-rate synergies.
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Kelvion is majority owned by Apollo-managed funds with a minority stake held by Triton, both of which will be acquired by SLB as part of the transaction.
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Kelvion’s standalone 2026 adjusted EBITDA is expected to be about $350–$400 million, highlighting the profitability SLB is buying alongside the assets.
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SLB’s data center solutions business is targeting more than 2 gigawatts of cumulative deliveries by year-end, signaling scale ahead of the AI infrastructure push.
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Apollo partner Waleed Elgohary described the deal as enabling Kelvion to pursue energy-efficiency solutions for the AI buildout, underscoring the strategic rationale of the transaction.
SLB, the world's largest oilfield services company, has agreed to buy Kelvion, a German cooling equipment maker, for $4.1 billion in total enterprise value. The deal includes $3.4 billion in cash and assumes roughly $700 million in debt, Bloomberg reported. SLB expects the acquisition to boost earnings and cash flow within the first year and unlock about $120 million in annual cost savings within three years.
Kelvion, backed by Apollo Global Management and Triton, is a leader in thermal management solutions for data centers and industrial customers. The company is expected to generate $2.3–$2.4 billion in revenue in 2026, with data centers as its largest market. The deal closes in the first half of 2027, pending regulatory approval, as SLB pushes deeper into AI infrastructure cooling.
Why SLB Is Buying Into Data Center Cooling
SLB is racing to capture growth from the AI infrastructure boom. Bloomberg Law noted that SLB's data center solutions business is targeting more than 2 gigawatts of cumulative deliveries by year-end. By acquiring Kelvion, SLB gains immediate scale and expertise in cooling systems, a critical bottleneck as data centers expand to power AI chips.
Apollo partner Waleed Elgohary called the deal a chance for Kelvion to "pursue energy-efficiency solutions for the AI buildout." The combined data center business is projected to reach $4.5–$5 billion in revenue by 2028, with EBITDA of $700–$800 million. That scale positions SLB as a serious player in the infrastructure-cooling race.
Strong Profit Profile and Cost-Cutting Opportunities
Kelvion is already highly profitable. Hoodline reported that the company's standalone 2026 adjusted EBITDA is expected to be $350–$400 million. SLB valued the deal at roughly 11x Kelvion's 2026 EBITDA before cost cuts, dropping to 8.5x after the expected $120 million in annual synergies kick in.
The synergy target suggests SLB sees significant overlap in operations. Cost savings could come from consolidating sales teams, manufacturing, or back-office functions. SLB promises the deal will be accretive to earnings and free cash flow within the first year—a strong signal of confidence in the integration plan.
What Happens to Apollo and Triton's Stakes
Apollo Global Management and Triton together own 100% of Kelvion. Securities.io confirmed that both investors will exit completely through this transaction. The deal gives Apollo and Triton a clean exit from their holding, likely generating strong returns after years of building Kelvion into a cooling powerhouse.
For SLB, the all-cash deal and debt assumption totaling $4.1 billion underscores the strategic priority of data center solutions. The company reaffirmed its commitment to a strong balance sheet and shareholder returns, signaling it can afford this expansion while maintaining financial discipline.
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