SLB Ltd. has agreed to acquire German cooling equipment maker Kelvion for $3.4 billion in cash. The deal expands the oilfield services giant's presence in data center services.
SLB purchased Kelvion from a group of investors led by Apollo Global Management. The German company specializes in cooling systems for data centers, a sector experiencing rapid growth as artificial intelligence and cloud computing demand increases.
The acquisition marks SLB's strategic pivot toward infrastructure services supporting digital infrastructure. Data center cooling has become critical infrastructure as enterprises scale computing operations globally.
Kelvion manufactures and supplies heat transfer equipment used to manage thermal loads in data center facilities. The company serves major cloud providers and enterprise data center operators worldwide.
The deal reflects broader industry consolidation in the data center support sector. As companies compete for market share in cloud infrastructure services, acquiring specialized equipment makers provides vertical integration opportunities.
Terms include cash consideration, with the transaction expected to close in 2025, subject to regulatory approvals.
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