Schlumberger NV (SLB)

SLB Ltd. is set to acquire German cooling equipment manufacturer Kelvion from investors including Apollo Global Management Inc. for $3.4 billion in cash. This acquisition, which includes the assumption of $700 million in debt, is aimed at expanding SLB's presence in data center services and is expected to close in the first half of 2027. Kelvion is majority-owned by Apollo-managed funds, with Triton holding a minority stake.

Apollo Funds announced a definitive agreement to sell Kelvion, a global leader in thermal management solutions, to SLB for approximately $3.4 billion in cash and the assumption of $0.7 billion in debt, totaling $4.1 billion. Kelvion, majority-owned by Apollo-managed funds, has significantly grown its focus on data centers with Apollo's support. This acquisition will strengthen SLB's data center solutions business by integrating Kelvion's critical thermal management technologies, expanding its market presence in the rapidly growing AI infrastructure sector.

SLB (NYSE: SLB) has signed a definitive agreement to acquire Kelvion, a global thermal management solutions provider, for approximately $4.1 billion, including $3.4 billion in cash and $0.7 billion in assumed debt. Kelvion, currently majority-owned by Apollo-managed funds, specializes in advanced cooling solutions for data centers and diversified industrials, with data centers being its fastest-growing segment. The acquisition aims to strengthen SLB's data center solutions business, expanding its offerings in integrated infrastructure and significantly increasing its revenue opportunity in the rapidly growing AI-driven data center market, with the deal expected to close in the first half of 2027 pending regulatory approvals.

SLB's 3D Far Field Sonic service provides operators with a quantitative understanding of subsurface structures and fractures beyond the wellbore, addressing limitations of traditional seismic and borehole imaging. This technology, developed from early sonic measurements, uses acoustic reflections to map features up to 200 feet away, even in cased-hole environments. It aids in optimizing drilling, completion design, stimulation strategies, and reservoir management by identifying fracture corridors, faults, and reservoir boundaries, especially in complex carbonate, unconventional, geothermal, and CCS applications.

SLB stock rose 4.2% after securing a new data agreement with Venezuela's PDVSA, gaining access to critical oilfield data and production monitoring. Despite the gains, analysts maintain a consensus target of $61.93, suggesting an 8.03% potential upside from its closing price of $57.33. The deal's financial terms are undisclosed, and risks include payment delays and geopolitical factors, although SLB's strong second-quarter revenue of $8.97 billion and positive regional growth offer a solid operational foundation.