This article first appeared on GuruFocus .
SLB ( NYSE:SLB ), the global energy-technology heavyweight, surged approximately 3.4% to $59.30 Monday morning after making a $3.4 billion bet on the data-center cooling boom. Reuters reported that SLB will buy thermal-management specialist Kelvion for cash and assume roughly $700 million of debt.
SLB is paying upand betting that synergies close the gap fast. The company's release values Kelvion at roughly 11 times estimated 2026 EBITDA before synergies and 8.5 times after them. Management expects $120 million in annual EBITDA benefits within three years, while forecasting an earnings and free-cash-flow-per-share boost during the first year after closing.
The growth target is enormous. SLB expects the combined data-center business to clear $2 billion in revenue and generate approximately $300 million in adjusted EBITDA during 2026. By 2028, management is aiming for midpoint revenue of $4.75 billion and EBITDA of $750 million, implying a 15.8% margin. But the stock already trades 30.07% above its $45.59 GF Value, meaning investors are demanding speed, synergies and near-flawless execution.
