Flex Ltd. is moving higher after announcing a definitive agreement to acquire Electrical Power Products (EP²), a move that strengthens Flex’s position in power products and power electronics—areas seeing outsized demand from AI-driven data-center buildouts. Investors are treating the deal as a bolt-on that can add higher-margin power capabilities and broaden Flex’s critical power offering set beyond its existing portfolio. (investors.flex.com)

Flex said EP² is expected to generate about $323 million of revenue for the fiscal year ending March 31, 2026, with double-digit organic growth and a mid-to-high teens adjusted EBITDA margin profile. Flex expects the transaction to close in the first quarter of fiscal 2027, subject to customary closing conditions, including Hart-Scott-Rodino clearance. (investors.flex.com)

Flex has been positioning its Power and Cloud businesses as key beneficiaries of data-center expansion, with management recently highlighting strong momentum tied to next-generation AI power, computing, and cooling solutions. The EP² purchase reinforces that narrative by adding more specialized power products capacity and engineering depth as hyperscalers and colocation operators prioritize power delivery hardware alongside compute. (investors.flex.com)

Key swing factors now include the timeline for regulatory clearance, integration execution, and whether Flex can sustain demand strength in power products across customer programs as AI infrastructure cycles evolve. Investors will also be watching for updated financial impacts (including any accretion timing) and additional details around how EP² is incorporated into Flex’s Power portfolio ahead of the expected fiscal 2027 close. (investors.flex.com)