Flex Announces $4.4 Billion Acquisition of EPC Power

Flex, a global manufacturing partner, has unveiled its plan to acquire EPC Power for $4.4 billion, with the deal set to close in the fourth quarter of 2026. EPC Power will merge with Flex's Cloud and Power Infrastructure segment and is expected to function as an independent publicly traded company in the first quarter of 2027. The California-based EPC Power, founded in 2010, specializes in providing intelligent power conversion solutions for data center and grid applications. It boasts a significant deployment across 62 countries and aims to surpass 30 GW in U.S. manufacturing capacity in 2027.

The acquisition is set to expand Flex's capabilities in data center and electrical infrastructure, positioning it for the evolving 800V data center power architectures driven by AI workloads. Flex's CEO, Revathi Advaithi, emphasizes the importance of EPC Power's leading power conversion and grid-forming technology in catering to the changing demands of digital infrastructure. EPC Power is projected to generate around $800 million in revenue in 2026, with an anticipated organic revenue growth of approximately 40% in 2027.

To fund the acquisition, Flex plans to utilize a combination of debt and equity. The completion of the transaction is subject to customary regulatory approvals and other closing conditions, with Evercore acting as the lead financial advisor to Flex. Key to the transaction, Citi and Bank of America are providing committed financing. EPC Power and its controlling shareholders, Goldman Sachs Alternatives and Cleanhill Partners, are being advised by Goldman Sachs & Co. LLC. and J.P. Morgan Securities LLC. Flex's intent to spin off its Cloud and Power Infrastructure portfolio adds another dimension to this strategic acquisition.