Flex to Acquire EPC Power for $4.4 Billion to Strengthen AI Data Center Power Conversion Portfolio

Flex, a global manufacturing and supply chain solutions provider, announced on Wednesday that it has entered into a definitive agreement to acquire EPC Power, a California-based provider of intelligent power conversion solutions, in a deal valued at $4.4 billion. The acquisition is expected to close in the fourth quarter of calendar 2026, after which EPC Power will become part of Flex's Cloud and Power Infrastructure (CPI) segment. Flex has also revealed plans to spin off CPI into an independent publicly traded company in the first calendar quarter of 2027.

The transaction comes as data center operators face a generational shift in power architecture, driven by rising power density and the changing demands of digital infrastructure. EPC Power, founded in 2010, specializes in power conversion systems for data center and utility applications, combining internally developed hardware, software, and controls with U.S.-based engineering and manufacturing. Its platform is built for next-generation 800V data center power architectures, which enable more efficient power delivery for higher-density AI infrastructure. The company's capabilities span rectifiers, DC-DC conversion, and the planned development of solid-state transformers.

EPC Power has deployed more than 15 GW of power conversion systems across 62 countries, and its annual U.S. manufacturing capacity is expected to surpass 30 GW in 2027. The company is projected to generate approximately $800 million in revenue in calendar 2026, with organic revenue growth of about 40 percent expected in 2027. EBITDA margin is anticipated to expand by double-digit percentage points to approximately 30 percent in 2027.

The acquisition is intended to broaden Flex's offering across data center and electrical infrastructure, complementing its existing power, cooling, and compute portfolio. EPC Power's technology will sit at the center of next-generation data center power systems, providing grid stabilization, backup power, and clean 800V power delivery to support modern GPUs.

"A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure," said Revathi Advaithi, Chief Executive Officer of Flex. "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. Together with our existing power, cooling, and compute capabilities, this transaction expands our ability to design and deliver digital infrastructure as an integrated system."

Jim Fusaro, Chief Executive Officer 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."

The industry significance of this deal extends beyond the companies involved. As AI workloads drive higher power densities in data centers, the transition to 800V architectures is becoming a critical enabler for efficient power delivery. EPC Power's grid-forming technology, which supports grid stabilization and backup power, is expected to play an increasingly important role as utilities and data center operators grapple with the strain of growing electricity demand. The acquisition reflects a broader trend of consolidation in the power infrastructure space, as companies seek to integrate hardware, software, and controls to deliver end-to-end solutions for next-generation data centers.

Flex said it is evaluating various financing alternatives and expects to fund the transaction with a combination of debt and equity. Committed financing is being provided by Citi and Bank of America. Evercore acted as lead financial advisor to Flex, with BofA Securities, Citi, and PJT Partners also providing financial advice. Freshfields LLP provided legal counsel to Flex. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC served as financial advisors, and Vinson & Elkins LLP served as legal counsel, to EPC Power and its controlling shareholders Goldman Sachs Alternatives and Cleanhill Partners.

The transaction is expected to close following receipt of customary regulatory approvals and satisfaction of other customary closing conditions.