SLB Stock Rises on Deal for Data Center Cooling Firm Kelvion
Dow Jones
3 hours ago
Shares of oil drilling and production company SLB are rising in premarket trading this morning after it went deeper into data centers with a $4.1 billion deal to acquire cooling-systems maker Kelvion.
SLB's stock rose more than 1% in premarket trading-a small but relatively unusual move for an acquirer. SLB is buying Kelvion from funds managed by Apollo, the majority owner, as well as funds managed by Triton. It will pay $3.4 billion in cash and assume about $700 million in debt.
Kelvion is a thermal management company and provides data center cooling services. Data centers are its fastest-growing end market, making up over half of Kelvion's total sales.
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