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Flex Buys EPC Power for $4.4B AI Data Center Push
8 Sep
Summary
- Flex acquires EPC Power for $4.4 billion to boost AI data center infrastructure.
- The deal is expected to close by Q4 2026, with EPC Power joining Flex's CPI segment.
- Flex plans to spin off its CPI business into a standalone public company in Q1 2027.
Flex Ltd. announced on September 3 its intention to acquire EPC Power, a maker of power conversion systems, in a transaction valued at $4.4 billion. This acquisition is set to enhance Flex's footprint in the rapidly expanding market for electricity infrastructure catering to artificial intelligence data centers.
The deal is anticipated to be finalized in the fourth quarter of 2026. Post-acquisition, EPC Power will become part of Flex's Cloud and Power Infrastructure (CPI) segment. This integration is strategically important as Flex plans to spin off its CPI business into a separate public company in the first quarter of 2027.
EPC Power's expertise in power conversion and grid-forming technology, serving data centers, utility-scale energy storage, and microgrids, will bolster Flex's capabilities. The company projects EPC Power to generate approximately $800 million in revenue for 2026, with substantial growth expected in the following year.
However, the $4.4 billion price tag represents a significant investment for Flex, placing pressure on its balance sheet. Successful integration of EPC Power's technology and operations will be crucial, especially given the upcoming spin-off of the CPI division. Any integration challenges could impact the timeline and success of the planned separation.
