Flex to Acquire EPC Power for $4.4B, Bolstering AI Data Center Power Capabilities — Flex Ltd.

Event summary

Flex to acquire EPC Power for $4.4B, expected to close in Q4 2026.
EPC Power generates $800M in revenue in 2026, with 40% organic growth expected in 2027.
EPC Power's EBITDA margin expected to expand to 30% in 2027.
Flex plans to spin off its Cloud and Power Infrastructure segment into an independent company in Q1 2027.
EPC Power's technology supports next-generation 800V data center power architectures.

The big picture

Flex's acquisition of EPC Power underscores the strategic importance of power conversion capabilities in the AI-driven data center market. The deal aligns with the broader industry shift towards higher-density AI infrastructure and next-generation power architectures. With the planned spin-off of its Cloud and Power Infrastructure segment, Flex aims to create a more focused entity capable of capitalizing on these trends. The $4.4B transaction reflects the growing investment in digital infrastructure solutions.

What we're watching

Integration Challenges: How Flex will integrate EPC Power's capabilities into its existing Cloud and Power Infrastructure segment.
Market Positioning: Whether the acquisition will solidify Flex's position in the AI data center power market.
Financial Performance: The pace at which EPC Power's revenue and EBITDA margin will grow post-acquisition.