SLB (SLB) investor relations material

Deal rationale and strategic fit

• Acquisition accelerates ambition to become a leading industrial technology partner for the data center industry, especially in AI infrastructure build-out, by expanding presence in a rapidly growing market driven by AI investment cycles.

• Adds critical thermal management and heat exchange technologies, addressing heat dissipation challenges in next-generation, energy-intensive data centers.

• Deepens technology portfolio, enhances modular and scalable infrastructure solutions, and increases total addressable market, including adjacencies in energy and industrial sectors.

• Kelvion's established presence in Europe and the U.S. complements existing geographic reach and customer base, supporting global expansion.

• Positions the business at the intersection of AI infrastructure and energy system transformation, supporting long-term growth.

Financial terms and conditions

• Purchase price is approximately $3.4 billion in cash, with $0.7 billion of assumed debt, totaling about 11x estimated 2026 adjusted EBITDA before synergies, or 8.5x after synergies.

• Transaction expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.

• Financed through existing cash balances and debt, maintaining a net debt to EBITDA ratio within 1.5x and preserving investment-grade profile.

• Expected to be accretive to earnings per share and free cash flow per share within 12 months of closing.

• Commitment to return over $4 billion to shareholders in 2026 through dividends and share repurchases.

Synergies and expected cost savings

• $120 million in annual EBITDA synergies expected within three years post-closing, with 60% realized by year two, from cost efficiencies and incremental revenue opportunities.

• $70 million from cost savings (supply chain, manufacturing, G&A, insourcing); remainder from incremental revenue opportunities.

• Revenue synergies driven by cross-selling, geographic expansion, and integration of technologies into modular offerings.