SLB has signed a $4.1bn agreement to acquire Kelvion to strengthen its Data Center Solutions business.
The transaction includes $3.4bn in cash and the assumption of $700m debt.
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SLB will purchase Kelvion from funds managed by Apollo, the primary owner, along with funds advised by Triton, the minority stakeholder.
According to SLB, the company’s expansion into data centre infrastructure is driven by the need for scalable and energy-efficient thermal management technologies.
Kelvion supplies thermal management and heat exchange solutions, with data centres representing its most significant and fastest-growing market segment.
The company’s data centre revenues are forecast to reach between $1.2bn and $1.3bn in 2026.
SLB CEO Olivier Le Peuch said: “AI is driving the most significant infrastructure investment cycle in our lifetime. This transaction accelerates our ambition to become an industrial technology partner to the data centre industry and help customers address the growing infrastructure complexity required to scale AI.”
SLB expects that combining its existing capabilities in modular manufacturing, engineering, and offsite construction with Kelvion’s cooling portfolio will broaden its integrated data centre solutions.
The company projects annual EBITDA synergies of around $120m within three years from both cost efficiencies and additional revenue channels.
The deal represents approximately 11 times the estimated 2026 EBITDA before synergies, and about 8.5 times including synergies.
Expectations for the combined data centre businesses in 2026 are more than $2bn in revenue and $300m in adjusted EBITDA on a pro-forma basis.
SLB is targeting data centre solutions revenue of $4.5bn to $5bn and adjusted EBITDA between $700m and $800m by 2028.
The acquisition remains subject to customary closing conditions and regulatory approval and is anticipated to be completed in the first half of 2027.
SLB reported that it expects the transaction to be accretive to earnings per share and free cash flow per share in the initial 12 months after completion.
