Flex to acquire EPC Power for $4.4 billion

September 8, 2026 at 06:30 AM2 min

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Flex Ltd. agreed to acquire EPC Power for $4.4 billion, subject to customary adjustments. The deal adds power conversion capabilities, including grid-forming technology, for data center and utility applications. Flex shares traded higher in Friday's premarket session.

Key Facts

Flex Ltd. agreed to acquire EPC Power for $4.4 billion, subject to customary adjustments.
EPC Power has deployed more than 15 GW across 62 countries.
EPC Power is expected to generate approximately $800 million in 2026 revenue.
Flex expects the deal to close in the fourth quarter of 2026.
Flex plans to separate its Cloud and Power Infrastructure segment into an independent publicly traded company in the first quarter of 2027.

Acquisition Details

Flex Ltd. agreed to acquire EPC Power for $4.4 billion, subject to customary adjustments. The agreement will add power conversion capabilities, including grid-forming technology, aimed at data center and utility applications. EPC Power provides intelligent power conversion solutions for data centers and grids, with more than 15 GW deployed across 62 countries. Its technology supports next-generation 800V data center architectures, including rectifiers, DC-DC conversion and planned solid-state transformers. Flex expects the deal to close in the fourth quarter of 2026.

Financial Impact

EPC Power will join Flex's Cloud and Power Infrastructure (CPI) segment, which Flex plans to separate into an independent publicly traded company in the first quarter of 2027. The acquired company is expected to generate approximately $800 million in 2026 revenue, with organic growth of approximately 40% in 2027 and EBITDA margin expanding to approximately 30%. Flex expects to finance the acquisition through a combination of debt and equity, subject to customary regulatory approvals and closing conditions. As of June 26, 2026, Flex cash and cash equivalent stood at $2.84 billion.

Market Reaction

Flex Ltd. shares are trading higher during Friday's premarket session. The stock carries a Buy rating with an average price forecast of $124.43. Goldman Sachs lowered its target to $154.00 on July 30, while Barclays lowered its target to $144.00 on the same day. Barclays had raised its target to $203.00 on June 4.