SLB Acquires Kelvion for $4.1 Billion to Enhance Data Center Cooling Solutions

SLB, formerly known as Schlumberger, is set to acquire German thermal management specialist Kelvion for $4.1 billion, a strategic move aimed at bolstering its data center cooling capabilities. The acquisition, revealed on August 31, includes approximately $3.4 billion in cash and the assumption of around $700 million in debt.

This deal highlights SLB's commitment to adapting to the growing demands of artificial intelligence infrastructure. Kelvion is expected to generate between $2.3 billion and $2.4 billion in revenue by 2026, with a significant portion—approximately $1.2 billion to $1.3 billion—coming from data center customers.

SLB's Data Center Solutions division has experienced rapid growth, with a compound annual growth rate exceeding 90% projected between 2024 and 2026. The merger is anticipated to yield pro forma data center revenues surpassing $2 billion and an adjusted EBITDA of around $300 million by the end of 2026.

Long-term projections are even more ambitious, with SLB forecasting combined revenues of $4.5 billion to $5 billion and EBITDA of $700 million to $800 million by 2028. Additionally, the company aims to achieve approximately $120 million in annual EBITDA synergies within three years post-acquisition.

SLB CEO Olivier Le Peuch emphasized that the acquisition is essential for addressing the infrastructure challenges posed by AI, as traditional air cooling methods are becoming inadequate for modern data centers. The transaction is expected to close in the first half of 2027, pending regulatory approvals.