Apollo Funds Agree to Sell Kelvion, a Global Leader in Cooling Solutions for Data Centers and Diversified Industrials, to SLB for $4.1 billion

Oneok (OKE) is acquiring Brazos Midstream's Permian Midland assets for $4.4B, funded by a $9B investment from Apollo (APO). The deal will double OKE's processing capacity, reduce leverage, and is expected to be accretive to earnings and free cash flow. OKE aims to maintain 3-4% annual dividend growth, with potential for increases.

Apollo Global Management (APO) shares fell 4.4% after Brightspeed, a broadband provider backed by Apollo-managed funds, reported a 8.7% revenue decline and raised concerns about its financial stability. Apollo is exploring financing options to address debt. Separately, Apollo announced converting its $9B stake in Oneok to fund an acquisition and agreed to sell Kelvion for $3.4B. The S&P 500, Dow, and Nasdaq also declined, contributing to the sell-off.

Apollo Global Management (NYSE:APO) shares dropped 3.5% after Brightspeed, an Apollo portfolio company, reported a 8.7% revenue decline to $386M in Q2 and expressed doubt about its ability to continue operations. Brightspeed is seeking financing to meet debt obligations, with a net loss of $879M for the first half of 2024.

SLB agreed to acquire German thermal management company Kelvion for approximately $3.4bn, including $700m in debt. The deal, valued at 11 times Kelvion's estimated 2026 EBITDA, aims to expand SLB's data centre cooling capabilities. Kelvion is expected to generate $2.3bn-$2.4bn in 2026 revenue, with data centres as its largest segment. SLB targets $4.5bn-$5bn in combined data centre revenue by 2028.

SLB (NYSE:SLB) agreed to acquire Kelvion for $4.1b to expand in data center infrastructure, strengthening its Data Center Solutions business and supporting its industrial technology ambitions. Management expects the deal to boost earnings and cash flow through operational synergies. SLB has a market cap of about $85.1b and has been diversifying beyond traditional energy services.

SLB (formerly Schlumberger) agreed to acquire Kelvion, a German cooling-equipment manufacturer, for $4.1 billion. The deal includes $3.4 billion in cash and $700 million in assumed debt, with completion expected in early 2027. SLB aims to expand into data-centre cooling, projecting $4.5B-$5B in annual revenue by 2028. Kelvion's technology could support SLB's shift towards AI infrastructure, though African involvement remains uncertain.