HOUSTON (dpa-AFX) - SLB N.V. (SLB), an energy technology company, on Monday said it has agreed to acquire Kelvion, a provider of thermal management and heat exchange solutions, from Apollo-managed funds and funds advised by Triton for approximately $3.4 billion in cash and the assumption of about $700 million of debt.
SLB said the acquisition will strengthen its Data Center Solutions business by adding Kelvion's thermal management and heat exchange technologies, expanding its presence in the rapidly growing data center infrastructure market. The transaction is expected to close in the first half of 2027.
The deal values Kelvion at about 11 times its estimated 2026 earnings before interest, taxes, depreciation and amortization (EBITDA) before synergies, or about 8.5 times EBITDA including expected annual run-rate synergies.
SLB expects the acquisition to be accretive to earnings per share and free cash flow per share within the first 12 months after closing. The company also expects to generate approximately $120 million in annual EBITDA synergies within three years through cost efficiencies and additional revenue opportunities.
On a pro forma basis, SLB and Kelvion are expected to generate more than $2 billion in data center revenue and approximately $300 million in adjusted EBITDA in 2026. SLB is targeting combined Data Center Solutions revenue of $4.5 billion to $5.0 billion and adjusted EBITDA of $700 million to $800 million in 2028.
Kelvion is expected to generate $2.3 billion to $2.4 billion in revenue and $350 million to $400 million in adjusted EBITDA in 2026, with data center revenue expected at $1.2 billion to $1.3 billion.
Following the acquisition, SLB expects its net debt-to-EBITDA ratio to remain within its previously stated through-cycle target of up to 1.5 times. The company also reaffirmed its commitment to return more than $4 billion to shareholders through dividends and share repurchases in 2026.
SLB shares were up more than 1% in pre-market trading after closing at $57.33 on Friday.
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