On September 7, 2026, Flex, a global electronics manufacturing services giant, announced that it has entered into a definitive acquisition agreement with EPC Power, a provider of power conversion solutions, in a transaction valued at up to USD 4.4 billion. The deal marks Flex’s full bet on power infrastructure opportunities stemming from the rapid growth of AI data centers and paves the way for the spin-off and public listing of its Cloud & Power Infrastructure (CPI) business segment.
Under the agreement, Flex will complete the acquisition through a combination of cash and equity. The transaction is expected to obtain all regulatory approvals and close in the fourth quarter of 2026. Upon closing, EPC Power will be integrated into Flex’s CPI business division. Flex plans to spin off this division into an independent publicly traded company in the first quarter of 2027.
Headquartered in California, United States, EPC Power develops power conversion systems engineered for next-generation 800V data center architectures, delivering more efficient power delivery for high-density AI infrastructure. The company has deployed more than 15 gigawatts (GW) of equipment across 62 countries, and its annual U.S. manufacturing capacity is projected to exceed 30 GW by 2027.
Revathi Advaithi, Chief Executive Officer of Flex, stated: “Power architecture is undergoing a generational shift… EPC Power brings leading power conversion and grid-building technologies that enable us to capitalize on this shift, delivering today’s 800V power conversion while advancing toward solid-state transformers.”
At the core of this acquisition is filling a critical gap in Flex’s data center power value chain. As power consumption of AI server racks surges sharply, power supply has become a key bottleneck limiting AI scaling. EPC Power’s platform includes digital rectifiers and DC-DC conversion capabilities, alongside a solid-state transformer (SST) roadmap. Its systems can integrate energy storage, microgrids and on-site power generation to realize “grid-building” functionality.
Analysts note that this acquisition transforms Flex from a pure electronics manufacturing and component supplier into a system integrator capable of delivering end-to-end “grid-to-chip” power solutions.
Neil Osnato, Founder of Persistence Analytics Group, commented: “The USD 4.4 billion price tag itself is a signal that power conversion is evolving from an auxiliary component into a strategic control point within AI infrastructure.”
Flex also disclosed robust financial projections for EPC Power: its 2026 revenue is expected to reach approximately USD 800 million, with organic revenue growth of roughly 40% in 2027, and the EBITDA margin projected to expand to around 30% in the same period.
Flex is evaluating various financing alternatives and expects to fund the transaction via a mix of debt and equity. Citibank and Bank of America have committed to providing financing support for the deal.
Nevertheless, this high-value acquisition carries notable risks. First, the USD 4.4 billion valuation places pressure on Flex’s balance sheet, and the acquisition must generate sufficient incremental earnings to justify the valuation. Second, execution risks exist in integrating EPC Power’s technologies and operations into Flex while preparing for the CPI spin-off. Furthermore, if market concerns over an AI capital expenditure bubble materialize, a slowdown in AI data center construction will directly hit demand forecasts for power infrastructure.
(Reprinted from https://news.eccn.com/）