UNITED STATES OF AMERICA —Manufacturing and supply chain solutions provider Flex has reached an agreement to acquire energy management firm EPC Power for $4.4 billion. The transaction, funded via a mix of debt and equity financing, is slated to close in the fourth quarter of 2026 pending regulatory approvals. Headquartered in Austin, Texas, Flex provides design, engineering, and manufacturing services across diverse global industries, while California-based EPC Power develops grid-forming power conversion technology for utility and industrial applications.
The acquisition directly enhances Flex's Cloud & Power Infrastructure segment by adding specialized power conversion, grid-forming capabilities, and large-scale digital rectifiers. These systems enable data center operators to link 800 VDC architectures directly to high-voltage power grids, bypassing traditional uninterruptible power supply setups and intermediate AC distribution equipment. EPC Power expects to generate roughly $800 million in revenue in 2026, with revenue projected to grow 40% organically in 2027 alongside EBITDA margins expanding toward 30%.
This strategic integration addresses pressing infrastructure challenges within the technology and power generation sectors. Rapid artificial intelligence deployment is driving unprecedented electricity demand, straining existing power grids and requiring more efficient power conversion architectures. Integrating EPC Power’s hardware and software controls enables data facilities above 75 MW to manage rapid load fluctuations, integrate on-site renewable generation, and ensure continuous operation without overloading localized energy systems.
Following the completion of the transaction, EPC Power will operate within Flex's Cloud & Power Infrastructure division. Flex subsequently plans to spin off the combined segment into a standalone, publicly traded business entity during the first quarter of 2027. The corporate restructuring allows both businesses to focus on specialized growth avenues, offering institutional investors dedicated exposure to high-growth artificial intelligence infrastructure and energy transformation technologies.
