Flex to acquire EPC Power in $4.4 billion deal to expand data center power offerings

Sept. 3 (Reuters) - Contract manufacturer Flex said on Thursday it will acquire power conversion systems maker EPC Power in a deal valued at $4.4 billion to strengthen its position in AI data center and power infrastructure markets.

Here are more details:

• Flex said the deal will expand its Cloud and Power Infrastructure (CPI) business as demand for AI infrastructure and next-generation 800V data center power systems grows.
• Flex CEO Revathi Advaithi said EPC Power's power conversion and grid-forming technology will help Flex benefit from the shift to next-generation power systems.
• The deal is expected to close in the fourth quarter of 2026, after which EPC Power will become part of Flex's Cloud and Power Infrastructure (CPI) segment.
• Flex said it intends to separate its CPI segment into a standalone public company in the first quarter of 2027.
• Flex said it expects to finance the acquisition through a combination of debt and equity, with committed financing provided by Citi and Bank of America.
• EPC Power develops power conversion systems used in data centers, energy storage projects and electric grids.
• The company has deployed more than 15 gigawatts of power systems in 62 countries and expects its U.S. manufacturing capacity to exceed 30 gigawatts in 2027.