Key Takeaways
- • Apollo-managed funds are divesting Kelvion to SLB (Schlumberger) for approximately $4.1 billion, comprising $3.4 billion in cash and $700 million in debt assumption, with closing expected in H1 2027.
- • SLB will acquire 100% of Kelvion, including the minority stake held by Triton-advised funds, integrating the thermal management specialist into its rapidly expanding data-centre solutions business.
- • Apollo acquired majority ownership of Kelvion in January 2026 through its Infrastructure Group and Hybrid Value franchise, capitalizing on the company's fastest-growing segment: data-centre cooling driven by artificial intelligence infrastructure demand.
- • Kelvion's data-centre solutions business represents its largest and fastest-growing segment; SLB's data-centre solutions business has expanded significantly over three years and expects cumulative deliveries to exceed 2GW globally by end of 2026.
- • The transaction underscores institutional capital deployment trends in AI-related infrastructure, with Apollo explicitly citing the deal as reflecting its strategy of investing in infrastructure requirements supporting global AI expansion.
Summary
Apollo Global Management has agreed to divest Kelvion, a thermal management systems manufacturer, to SLB (Schlumberger Limited) for $4.1 billion in an all-cash and debt assumption transaction. The deal structure comprises $3.4 billion in cash payment alongside SLB's assumption of approximately $700 million in Kelvion debt. SLB will acquire 100% of Kelvion's equity, including the minority stake held by funds advised by Triton, with closing expected during the first half of 2027, subject to regulatory approvals and customary closing conditions.
Apollo established its controlling interest in Kelvion in January 2026 through investments from its Infrastructure Group and Hybrid Value franchises. During its nine-month holding period, Apollo provided capital and strategic support focused on accelerating expansion in data-centre cooling solutions, which emerged as Kelvion's largest and fastest-growing business segment. Kelvion manufactures thermal management systems for data centres, industrial applications, and energy infrastructure, with products engineered to enhance efficiency and reliability in cooling-intensive operations.
The acquisition aligns with SLB's strategic expansion in data-centre infrastructure. SLB's data-centre solutions business has grown substantially over the past three years and expects cumulative global deliveries to exceed 2 gigawatts by the end of 2026. The combination of Kelvion with SLB's existing data-centre portfolio will expand SLB's thermal management capabilities and reinforce its market position in the high-growth data-centre infrastructure sector.
Apollo partner Waleed Elgohary characterized the investment and divestment cycle as reflective of the firm's capital deployment strategy targeting infrastructure requirements associated with global artificial intelligence expansion. The sale price and timing suggest strong market valuations for AI-adjacent thermal management assets, demonstrating institutional investor appetite for infrastructure supporting AI computational scaling. The transaction is expected to close in H1 2027, pending regulatory approval.
Apollo established its controlling interest in Kelvion in January 2026 through investments from its Infrastructure Group and Hybrid Value franchises. During its nine-month holding period, Apollo provided capital and strategic support focused on accelerating expansion in data-centre cooling solutions, which emerged as Kelvion's largest and fastest-growing business segment. Kelvion manufactures thermal management systems for data centres, industrial applications, and energy infrastructure, with products engineered to enhance efficiency and reliability in cooling-intensive operations.
The acquisition aligns with SLB's strategic expansion in data-centre infrastructure. SLB's data-centre solutions business has grown substantially over the past three years and expects cumulative global deliveries to exceed 2 gigawatts by the end of 2026. The combination of Kelvion with SLB's existing data-centre portfolio will expand SLB's thermal management capabilities and reinforce its market position in the high-growth data-centre infrastructure sector.
Apollo partner Waleed Elgohary characterized the investment and divestment cycle as reflective of the firm's capital deployment strategy targeting infrastructure requirements associated with global artificial intelligence expansion. The sale price and timing suggest strong market valuations for AI-adjacent thermal management assets, demonstrating institutional investor appetite for infrastructure supporting AI computational scaling. The transaction is expected to close in H1 2027, pending regulatory approval.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.