SLB Buys Kelvion for $4.1B in AI Infrastructure Push

Energy technology giant SLB is set to acquire thermal management solutions provider Kelvion from Apollo-managed funds in a transaction valued at approximately $4.1 billion. This significant deal, comprising $3.4 billion in cash and the assumption of roughly $700 million in debt, underscores the escalating demand for infrastructure supporting artificial intelligence growth. The acquisition, which also includes the divestment of a minority stake held by funds advised by Triton, is anticipated to finalize in the first half of 2027, pending regulatory approvals.

Kelvion, a specialist in thermal management systems crucial for data centers, industrial applications, and energy infrastructure, has seen its focus sharpened on data-center cooling under Apollo's ownership. This segment has emerged as Kelvion's most substantial and rapidly expanding business unit. Apollo's investment strategy has been geared towards capitalizing on the infrastructure needs driven by the global expansion of AI, a trend that has seen substantial capital deployment, with Apollo funds investing over $155 billion in infrastructure and related assets over the past five years.

The integration of Kelvion into SLB's existing data-center solutions arm is expected to significantly enhance SLB's market position. SLB's data-center solutions business has experienced robust growth, projecting global deliveries to surpass 2 gigawatts by the close of 2026. By incorporating Kelvion's advanced thermal management technologies, SLB aims to more than double its potential revenue opportunities per gigawatt of data-center capacity, reflecting a strategic move to capture a larger share of the AI-driven infrastructure investment wave.

This transaction represents a swift return for Apollo, which only took a majority stake in Kelvion in January 2026. It highlights Apollo's proficiency in identifying and investing in businesses aligned with major infrastructure trends and subsequently attracting strategic acquirers seeking exposure to these dynamic markets. Kelvion CEO Andy Blandford is slated to continue leading the company post-acquisition, having overseen its development in both data centers and diversified industrial sectors during its tenure with Apollo and Triton.

The deal arrives at a time of intense market focus on the infrastructure underpinning AI computing. As data centers grapple with increasing power densities and thermal loads, efficient cooling systems are becoming paramount. Kelvion's expertise in this area positions it as a key player in addressing these critical operational challenges. Financial advisory for Apollo and Kelvion was led by Guggenheim Securities, with UBS also providing advisory services. Sidley Austin served as legal counsel, and Paul, Weiss, Rifkind, Wharton advised on regulatory matters.