SLB Acquires Kelvion for $4.1 Billion to Expand Data Center Infrastructure Business

Houston-based oilfield services giant SLB will pay $3.4 billion in cash and assume $700 million in debt to acquire German thermal management manufacturer Kelvion, pivoting the traditional energy company deeper into the artificial intelligence infrastructure boom. The definitive agreement, signed on August 31, 2026, purchases the century-old cooling specialist from majority owner Apollo-managed funds and minority stakeholder Triton. The $4.1 billion transaction values Kelvion at approximately 11 times its estimated 2026 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), or 8.5 times when factoring in expected synergies.[1][2][3]

The logic behind the acquisition lies in the sheer scale of computing capacity currently under construction to support generative AI. Data centers packed with high-density processors generate enormous quantities of heat, and keeping that hardware within safe operating temperatures has become a critical bottleneck for facility operators. Kelvion manufactures the heat exchangers, heat rejection equipment, and advanced liquid cooling systems required to manage these extreme thermal loads.[1][5]

"AI is driving the most significant infrastructure investment cycle in our lifetime," said Olivier Le Peuch, chief executive officer of SLB. "This transaction accelerates our ambition to become an industrial technology partner to the data center industry and help customers address the growing infrastructure complexity required to scale AI."

Kelvion, founded in 1920 and formerly the heat exchanger business of GEA Group, has shifted its focus heavily toward high-tech and green-tech applications over the last decade. The company expects to generate between $2.3 billion and $2.4 billion in total revenue in 2026, with adjusted EBITDA of $350 million to $400 million. Data centers represent Kelvion's largest and fastest-growing segment, forecast to contribute between $1.2 billion and $1.3 billion of that revenue this year.[1]

For SLB, the acquisition accelerates a diversification strategy that has already seen its Data Center Solutions business grow at a compound annual rate exceeding 90% between 2024 and 2026. The company expects its cumulative delivered data center capacity to surpass 2 gigawatts by the end of this year. By integrating Kelvion's cooling technologies with SLB's existing modular manufacturing and power integration capabilities, SLB states the deal will more than double its revenue opportunity per gigawatt of delivered capacity.[1][2]

Combined, the data center businesses of SLB and Kelvion are projected to generate more than $2 billion in revenue and approximately $300 million in adjusted EBITDA on a pro-forma basis in 2026. SLB is targeting considerably higher figures by 2028, aiming for combined data center revenue of $4.5 billion to $5 billion and adjusted EBITDA of $700 million to $800 million.[5]

To justify the $4.1 billion valuation, SLB expects to realize about $120 million in annual EBITDA synergies within three years of the deal's closing. Approximately $70 million of that total will come from cost savings derived from supply chain efficiencies, manufacturing optimization, and consolidated logistics, with the remainder expected from expanded revenue opportunities as the two companies cross-sell their infrastructure services.[1]

While data centers are the primary driver of the acquisition, Kelvion also maintains established positions in key energy transition markets. The company provides thermal management solutions for heat pumps, renewable energy installations, and carbon capture and processing facilities—sectors where efficient heat transfer is increasingly a performance differentiator rather than an afterthought.[4][5]

The acquisition remains subject to regulatory approvals and customary closing conditions, with completion expected in the first half of 2027. Until then, Kelvion will continue to operate under its current management structure, led by CEO Andy Blandford, as SLB prepares to integrate the German manufacturer into its broader New Energy and Industrial business.[2][5]