SLB Acquires Kelvion for $4.1B to Bolster Data Center Thermal Management
Event summary
- SLB to acquire Kelvion for $3.4B in cash plus $0.7B in assumed debt, valuing the deal at ~11x 2026 EBITDA before synergies.
- Kelvion, with $2.3B–$2.4B in 2026 revenue, brings thermal management expertise to SLB’s data center solutions business.
- Combined entity targets $4.5B–$5B in 2028 data center revenue, up from $2B+ in 2026 pro forma revenue.
- SLB expects $120M in annual EBITDA synergies within three years post-closing, slated for H1 2027.
The big picture
SLB’s acquisition of Kelvion positions it as a one-stop shop for AI-driven data center infrastructure, addressing rising energy demands and cooling complexities. The deal underscores the convergence of industrial tech and digital transformation, with SLB targeting a 2x revenue boost per gigawatt of capacity by embedding thermal management into its modular offerings. The $4.1B transaction reflects the premium placed on thermal efficiency in an era of AI-driven data center expansion.
What we're watching
- Integration Challenges
- How SLB will merge Kelvion’s thermal management capabilities with its existing modular data center solutions.
- AI Infrastructure Demand
- Whether SLB can sustain its 90%+ CAGR in data center solutions revenue amid accelerating AI deployment.
- Regulatory Approval
- The pace at which SLB secures approvals for the deal, given its $4.1B transaction value and cross-border implications.
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