Flex acquires EPC Power for $4.4B to boost data center and grid infrastructure
News provided byFlex · 2 min read
In a significant move to enhance its position in the evolving data center and grid infrastructure markets, Flex (NASDAQ: FLEX) has announced its acquisition of EPC Power for $4.4 billion, subject to customary adjustments. The deal is expected to close in the fourth quarter of 2026, with EPC Power joining Flex's Cloud and Power Infrastructure (CPI) segment. Flex also plans to separate CPI into an independent publicly traded company in the first quarter of 2027.
Founded in 2010 and headquartered in California, EPC Power is a leading provider of intelligent power conversion solutions for data center and grid applications. The company has developed advanced hardware, software, and control systems, including next-generation 800V data center power architectures. EPC Power’s technology supports more efficient power delivery for high-density AI infrastructure, with applications across rectifiers, DC-DC conversion, and planned development of solid-state transformers. EPC Power currently operates with over 15 GW of deployed capacity across 62 countries and anticipates surpassing 30 GW of U.S. manufacturing capacity by 2027.
The acquisition will significantly expand Flex’s portfolio, incorporating EPC Power’s differentiated power conversion capabilities into its existing power, cooling, and compute offerings. This integration aims to accelerate Flex’s transition to next-generation 800V data center power architectures, critical for supporting the increasing power demands of artificial intelligence (AI) workloads. According to Revathi Advaithi, CEO of Flex, "A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure. EPC Power brings leading power conversion and grid-forming technology that positions us to capitalize on this shift, delivering 800V power conversion today and building towards solid-state transformers."
Jim Fusaro, CEO of EPC Power, added, "EPC Power has built a leading position by solving some of the most difficult power conversion challenges through integrated hardware, software, and controls. As demand for AI infrastructure accelerates, customers need power systems that are more intelligent, efficient, and resilient. Together, we will combine our capabilities and expertise to help customers meet these challenges at scale."
Financial details indicate that EPC Power is expected to generate approximately $800 million in revenue for the calendar year 2026, with organic revenue growth projected at around 40% in 2027. The company’s EBITDA margin is anticipated to expand to approximately 30% by the same year.
The transaction is part of Flex’s broader strategy to leverage its global manufacturing and supply chain expertise to support the rapid deployment of AI infrastructure. "This acquisition will enable us to design and deliver digital infrastructure as an integrated system, addressing the complex challenges of power, heat, and scale," said Advaithi.
Evercore acted as the lead financial advisor to Flex, with BofA Securities, Citi, and PJT Partners providing additional financial advice. Freshfields LLP provided legal counsel to Flex, while Goldman Sachs & Co. LLC. and J.P. Morgan Securities LLC served as financial advisors to EPC Power and its controlling shareholders, Goldman Sachs Alternatives and Cleanhill Partners. Citi and Bank of America provided committed financing to support the transaction.
The deal is subject to customary regulatory approvals and other closing conditions. Upon completion, the combined entity will play a crucial role in the evolving landscape of data center and grid infrastructure, positioning Flex to better serve the growing needs of the AI era.