Flex signed a definitive agreement to acquire EPC Power for $4.4 billion, subject to customary adjustments. The contract establishes the terms of the proposed transaction, but ownership has not yet changed because regulatory approvals and other closing conditions remain outstanding.
Flex expects the acquisition to close in the fourth quarter of calendar 2026 and plans to place EPC Power inside its Cloud and Power Infrastructure, or CPI, segment. Flex separately intends to spin off CPI as an independent publicly traded company in the first quarter of 2027, making that separation a later transaction rather than an automatic consequence of the purchase agreement.
EPC Power designs hardware, software and controls for converting and managing electricity in data centers and grid applications. Its portfolio includes rectifiers and DC-to-DC systems relevant to next-generation 800-volt data-center architectures; solid-state transformers are described as a planned development, not an already commercialized product line.
The target says its systems have been deployed across more than 15 gigawatts in 62 countries. It also expects annual U.S. manufacturing capacity to exceed 30 gigawatts in 2027. Those measures describe installed reach and a capacity forecast, not guaranteed future production or sales.
EPC Power forecasts about $800 million of revenue in calendar 2026, roughly 40% organic growth in 2027 and an EBITDA margin near 30% after a double-digit percentage-point expansion. These figures form part of management’s transaction case and remain forward-looking estimates rather than completed financial results.
Flex’s strategic thesis is that customers building dense AI data centers increasingly need power conversion, cooling, compute and manufacturing capabilities designed as one system. Owning EPC Power could broaden CPI’s offering from equipment integration into more of the power path, while execution will determine whether the combination delivers the expected technical and commercial benefits.
Flex is still evaluating the final financing mix and expects to use both debt and equity. Citi and Bank of America have provided committed financing, but that commitment should not be read as the final capital structure or as proof that all acquisition funding has already been drawn.
The decisive milestones are regulatory clearance, satisfaction of closing conditions, financing execution and subsequent integration. The planned CPI spin-off has its own timing and market risks, so neither the acquisition nor the separation should be treated as completed until the relevant steps actually occur.
