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yesterday

SLB to Buy German Heat-Exchange Maker Kelvion for $4.1 Billion

The all-cash deal is meant to scale SLB’s data-center cooling business to serve higher-power AI clusters and is expected to close in the first half of 2027 pending regulatory approvals.

Server room
Photo: Brett Sayles / Pexels
Olivier Le Peuch, chief executive of SLB, said the company believes artificial intelligence — and the resulting push for data centers — is driving the "most significant infrastructure investment cycle in our lifetime."
(Stock.adobe.com)

Overview

  • SLB announced Monday, August 31, 2026 that it will acquire Kelvion for $3.4 billion in cash and assume about $700 million of debt, valuing the company at roughly $4.1 billion enterprise value.
  • The purchase price implies about an 11x multiple of Kelvion’s estimated 2026 EBITDA, which SLB says it will finance from cash and debt to avoid diluting shareholders.
  • Management projects the combined data-center business will report pro forma revenues above $2 billion and roughly $300 million of adjusted EBITDA in 2026, with targets of $4.5–$5.0 billion revenue and $700–$800 million EBITDA by 2028.
  • SLB expects to capture about $120 million in annual EBITDA synergies within three years and says the deal will be accretive to earnings and free cash flow per share in the first full year after close.
  • Kelvion is a specialist in heat exchangers and liquid-cooling, with roughly half of its projected 2026 revenue coming from data-center customers, and the acquisition is intended to help hyperscalers deploy higher-density AI hardware that outpaces traditional air cooling.