Flex Powers Up AI Ambitions With $4.4B Acquisition Of EPC Power

• Flex will acquire EPC Power for $4.4 billion in a cash-and-stock transaction expected to close in late 2026. 
• The purchase adds advanced 800V power conversion and grid-stabilization technology essential for high-density AI computing and data center infrastructure. 
• EPC Power will integrate into Flex’s Cloud and Power Infrastructure division, which the company intends to spin off as a standalone public entity in early 2027. 

Manufacturing services firm Flex (FLEX) announced Thursday that it has entered into a definitive agreement to acquire EPC Power Corp. for $4.4 billion, marking a significant step to bolster its power conversion technology for artificial intelligence infrastructure and power grids.

The acquisition will integrate EPC Power into Flex's Cloud and Power Infrastructure (CPI) business segment. The transaction is projected to wrap up in the fourth quarter of calendar year 2026, subject to customary regulatory approvals and standard closing terms.

Following the close, Flex plans to carve out its CPI business into an independent, publicly traded corporation during the first quarter of 2027.

FLEX stock rose nearly 2% on Thursday, but dropped about 1.6% after-hours. 

Supercharging AI And Grid Capabilities

Founded in 2010 and based in California, EPC Power designs and manufactures specialized power conversion equipment. Its technologies feature custom hardware, internal software, and controls tailored for data centers, microgrids, and large-scale utility operations.

EPC Power’s lineup is tailored to enable modern 800-volt data center power setups, a design gaining traction as power-heavy AI processing workloads demand greater efficiency. The target company’s pipeline includes rectifiers, DC-to-DC energy converters, and upcoming solid-state transformer technology.

To date, EPC Power has deployed over 15 gigawatts of technology across 62 countries. The firm expects to expand its domestic manufacturing throughput beyond 30 gigawatts in 2027.

Flex Chief Executive Officer Revathi Advaithi stated that digital infrastructure is undergoing a fundamental shift due to escalating power requirements. Advaithi noted that incorporating EPC Power's grid-forming systems allows Flex to offer full-spectrum, integrated architecture spanning compute, cooling, and power management.

Jim Fusaro, chief executive officer of EPC Power, emphasized that partnering with Flex provides the scale needed to help data center operators manage unpredictable energy demand associated with intensive AI computing.

Financial Projections And Transaction Details

EPC Power is on track to bring in roughly $800 million in revenue during calendar 2026. Flex anticipates that EPC Power will achieve around 40% organic revenue growth in 2027, accompanied by double-digit margin expansion, which could drive its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin toward 30%.

Flex plans to fund the $4.4 billion purchase through a mix of debt and equity, with committed debt financing from Bank of America and Citi.

Evercore served as Flex's primary financial advisor, while Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC advised EPC Power and its controlling owners, Goldman Sachs Alternatives and Cleanhill Partners.

FLEX Stock: Retail View 

Retail sentiment on Stocktwits was ‘bearish’ with ‘normal’ message volumes. 

FLEX stock has gained 71.2% year-to-date. 

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