SLB has agreed to acquire thermal-management and heat-exchange specialist Kelvion from Apollo Global Management in a cash transaction valued at approximately $4.1 billion. The purchase price includes the assumption of about $700 million in debt and represents a major expansion of SLB’s business beyond its traditional oilfield services and energy technology markets.
Kelvion provides advanced cooling systems for data centers and other industrial facilities worldwide. The company is expected to generate between $2.3 billion and $2.4 billion in revenue during 2026, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $350 million to $400 million. Data centers are Kelvion’s largest and fastest-growing market, accounting for a projected $1.2 billion to $1.3 billion of 2026 revenue.
The acquisition will combine Kelvion’s cooling and heat-exchange technologies with SLB’s rapidly expanding data center solutions business, which expects cumulative global deliveries to exceed 2 gigawatts by the end of 2026. Together, the businesses are expected to generate more than $2 billion in pro forma data center revenue and approximately $300 million in adjusted EBITDA during 2026.
SLB expects the transaction to increase earnings per share and free cash flow per share within the first 12 months after closing. The company is targeting approximately $120 million in annual EBITDA synergies within three years and expects the combined data center operation to reach $4.5 billion to $5 billion in revenue by 2028.
Industry Impact
The transaction demonstrates how oilfield technology companies are applying their engineering, power-management and infrastructure capabilities to high-growth markets outside upstream oil and gas. North America’s position as a “Safe Barrel” supplier—supported by reliable domestic production, established infrastructure and geopolitical stability—also strengthens its ability to provide the natural gas and power needed by expanding data center capacity. For the oilfield services sector, this creates adjacent opportunities tied to both energy supply and data center construction.
Sales Strategy
Oilfield service and equipment suppliers should evaluate where their products can support SLB and Kelvion projects, particularly in heat exchangers, pumps, valves, process piping, modular fabrication, automation, electrical systems and maintenance. Sales teams should target SLB’s data center infrastructure and supply-chain groups while emphasizing experience with mission-critical facilities, rapid deployment, reliability and energy efficiency.
Two-Sentence Summary
SLB will acquire Kelvion from Apollo for approximately $4.1 billion, adding a global cooling and heat-exchange business expected to generate as much as $2.4 billion in 2026 revenue. The deal expands SLB beyond traditional oilfield services and targets a combined data center business producing up to $5 billion in annual revenue by 2028.
Author: phinds