SLB agrees to acquire thermal management company Kelvion for $3.4 billion to expand its data center infrastructure business

SLB announced Monday it has signed a definitive agreement to acquire Kelvion — a global provider of thermal management and heat exchange technologies — for approximately $3.4 billion in cash. The deal also includes SLB assuming roughly $0.7 billion in debt, valuing the transaction at approximately 11 times Kelvion’s estimated 2026 EBITDA before synergies.

The acquisition marks a major expansion of SLB’s data center infrastructure business, as the oilfield services giant moves deeper into one of the energy sector’s fastest-growing markets.

Deal terms and financial structure

SLB is buying Kelvion from two private equity firms: Apollo-managed funds, which hold a majority stake, and Triton-advised funds, which hold a minority interest. The $3.4 billion cash payment covers 100% of the company, and on top of that, SLB will assume roughly $0.7 billion of Kelvion’s existing debt.

From there, SLB is targeting $4.5 to $5 billion in revenue and $700 to $800 million in adjusted EBITDA for its combined data center solutions business by 2028.

Including that debt assumption, the total transaction value works out to approximately 11 times Kelvion’s estimated 2026 EBITDA before synergies. Factor in expected synergies, and that multiple drops to around 8.5 times — a more comfortable number for a deal this size.

SLB expects the acquisition to be accretive to both earnings per share and free cash flow per share within the first 12 months after closing. Customary regulatory approvals are still required, and the deal is expected to close in the first half of 2027.

Why SLB is acquiring Kelvion: Strategic rationale

SLB has been building out its Data Center Solutions business, and Kelvion fills a specific gap: thermal management and cooling technologies. AI workloads keep getting more demanding, which means data centers are consuming more power and generating more heat. Advanced cooling isn’t a nice-to-have anymore — it’s a core infrastructure requirement.

CEO Olivier Le Peuch framed the deal broadly. “AI is driving the most significant infrastructure investment cycle in our lifetime,” he said, describing the acquisition as a step toward making SLB an “industrial technology partner to the data center industry.”

The deal more than doubles SLB’s revenue opportunity per gigawatt of delivered capacity. Gavin Rennick, president of SLB’s New Energy and Industrial business, put it plainly: thermal management is central to scaling AI infrastructure, and this acquisition lets SLB address it directly.

Expected financial impact and synergy targets

On a combined pro-forma basis, SLB and Kelvion are expected to generate more than $2 billion in data center revenue and approximately $300 million in adjusted EBITDA in 2026. That’s the baseline. From there, SLB is targeting $4.5 to $5 billion in revenue and $700 to $800 million in adjusted EBITDA for its combined data center solutions business by 2028.

The synergy target sits at $120 million in annual EBITDA within three years, drawn from both cost efficiencies and incremental revenue opportunities.

Despite the deal’s size, SLB says its balance sheet stays solid. The company reaffirmed its commitment to return more than $4 billion to shareholders in 2026 through dividends and share repurchases, and it expects to keep its net debt-to-EBITDA ratio within its through-cycle target of up to 1.5 times — a signal that management isn’t stretching itself thin to get this done.

Kelvion’s business profile and market position

Kelvion isn’t a niche player. The company operates across a broad range of cooling and heat-transfer applications, serving industries well beyond data centers — though data centers have become its largest and fastest-growing end market by a clear margin.

In 2026, Kelvion is projected to generate total revenue of $2.3 to $2.4 billion, with $1.2 to $1.3 billion of that coming from data centers alone. Adjusted EBITDA is expected to land between $350 and $400 million for the year.

Kelvion CEO Andy Blandford called the deal “a significant milestone” for the company, crediting its employees and investors — including Apollo and Triton — with helping transform Kelvion into what he described as “a fast-growing, highly successful global business.” He expressed enthusiasm about joining SLB, citing the company’s global reach and innovation capabilities.

Data center electricity demand: Broader industry context

The SLB-Kelvion deal doesn’t happen in a vacuum. The broader data center industry is in the middle of a dramatic expansion, driven almost entirely by AI.

The International Energy Agency reported that global data center electricity demand rose 17% in 2025, with AI-focused data centers growing even faster — well outpacing overall global electricity demand growth of 3%. Capital expenditure from five large technology companies surpassed $400 billion in 2025 and is projected to rise a further 75% in 2026. Those are the conditions that make a deal like this make sense.

The IEA projects that data center electricity consumption will double by 2030, while power use from AI-focused data centers specifically is set to triple. SLB‘s own data center solutions revenue has grown at a compound annual growth rate exceeding 90% between 2024 and 2026, and the company expects its cumulative delivered capacity to surpass two gigawatts by the end of 2026.

Critical thermal management capabilities

SLB is paying approximately $3.4 billion in cash — plus assuming $0.7 billion in debt — to acquire Kelvion from Apollo and Triton. The deal adds critical thermal management capabilities to SLB’s data center business, more than doubles its revenue opportunity per gigawatt, and positions the combined company to target $4.5 to $5 billion in data center revenue by 2028. Annual synergies of roughly $120 million are expected within three years. Regulatory approval is still pending, with closing targeted for the first half of 2027.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.