Key facts
- SLB is acquiring German cooling equipment maker Kelvion for approximately $3.4 billion in cash.
- The deal includes assuming $700 million of Kelvion's debt.
- Kelvion is projected to generate $2.3 billion to $2.4 billion in revenue this year, with $1.2 billion to $1.3 billion from data centers.
- SLB expects $120 million in annual EBITDA synergies within three years.
- The transaction is expected to close in the first half of 2027.
SLB, the world's largest oilfield services company, is significantly expanding its footprint in the AI data center boom through a $3.4 billion acquisition of German cooling equipment maker Kelvion. This strategic move aims to capitalize on the rapidly growing demand for data center infrastructure, particularly for cooling solutions.
The acquisition, valued at approximately $3.4 billion in cash plus $700 million in assumed debt, is expected to close in the first half of 2027, subject to regulatory approvals. SLB anticipates achieving $120 million in annual EBITDA synergies within three years of the deal's completion.
Kelvion is a key player in thermal management systems, projecting revenues between $2.3 billion and $2.4 billion this year, with $1.2 billion to $1.3 billion derived from its data center segment, which is its largest and fastest-growing market. The company's products also serve other energy and industrial sectors.
SLB projects that the integration of Kelvion will more than double the revenue opportunity for every gigawatt of data center capacity it delivers. The company's existing data center business has seen rapid growth, with revenue expected to increase at a compound annual rate above 90% between 2024 and 2026. By the end of 2026, SLB expects its combined data center operations with Kelvion to generate over $2 billion in revenue and approximately $300 million in adjusted EBITDA. The company has set ambitious targets for 2028, aiming for $4.5 billion to $5 billion in revenue and $700 million to $800 million in adjusted EBITDA from this segment.
This acquisition builds upon SLB's prior efforts to diversify beyond oilfield services into data center infrastructure. The company had previously formed a strategic alliance with Liberty Energy, combining SLB's modular data center infrastructure with Liberty's power generation capabilities. The addition of Kelvion's cooling and thermal management expertise is expected to further solidify SLB's position in the data center market.