SLB announced the acquisition of Kelvion, a thermal management and heat exchange technology provider, for approximately $3.4 billion in cash and the assumption of $0.7 billion in debt. This strategic move significantly strengthens SLB's Data Center Solutions business, positioning it for substantial growth in the rapidly expanding data center and industrial markets.
SLB is acquiring Kelvion, a global provider of thermal management and heat exchange technologies, for $3.4 billion in cash and $0.7 billion in assumed debt. This acquisition is a significant strategic move for SLB, aiming to bolster its Data Center Solutions business, which is experiencing rapid growth (90%+ CAGR between 2024-2026). Kelvion's expertise in thermal management is crucial for increasingly energy-intensive data centers and industrial systems, aligning SLB with powerful long-term growth trends in AI infrastructure and energy system transformation. The transaction is expected to be accretive to SLB's EPS and free cash flow within 12 months and generate $120 million in annual EBITDA synergies. This positions SLB for substantial growth in the data center market, targeting $4.5 billion to $5 billion in revenue for its combined data center solutions business by 2028, while maintaining a strong balance sheet. This is a clear positive for SLB, indicating a strategic pivot and expansion into high-growth areas.