Flex Buys EPC Power for $4.4B
Deal expands Flex's exposure to growing AI data center electricity infrastructure market, with EPC Power generating $800 million in revenue in 2026
Flex has agreed to acquire EPC Power, a power conversion specialist, for $4.4 billion. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals.
EPC Power has a significant presence in the global market, having deployed more than 15 gigawatts of equipment across 62 countries. The company's annual U.S. manufacturing capacity is expected to exceed 30 GW in 2027, indicating a strong growth trajectory.
The acquisition is expected to boost Flex's revenue, with EPC Power projected to generate about $800 million in revenue in 2026. Flex expects EPC Power's organic revenue to grow about 40% in 2027, while its EBITDA margin is forecast to reach roughly 30%.
The acquisition will place EPC Power within Flex's Cloud and Power Infrastructure business, which Flex plans to separate into an independent publicly traded company in the first quarter of 2027. This planned spin-off has sharpened Flex's focus on the infrastructure bottlenecks emerging alongside the AI data center boom.
## Why it matters The deal highlights the growing importance of electricity infrastructure serving artificial intelligence data centers. As AI computing facilities become increasingly power-intensive, the demand for efficient power conversion equipment is on the rise. Flex's acquisition of EPC Power is a strategic move to expand its exposure to this rapidly growing market.
The acquisition is also a significant step for Flex's Cloud and Power Infrastructure business, which will be separated into an independent publicly traded company next year. This spin-off will allow the business to focus on power and thermal management systems and other infrastructure for AI data centers and mission-critical facilities.
## What happens next The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals. Flex plans to fund the acquisition through a combination of debt and equity, and is currently evaluating financing options. Once the acquisition is complete, EPC Power will become a part of Flex's Cloud and Power Infrastructure business, which will eventually be separated into an independent publicly traded company.
