Flex to Acquire EPC Power, Adding Leading Power Conversion Capabilities for AI Data Centers and Grid Applications

Flex, a global leader in manufacturing and supply chain solutions, has announced a definitive agreement to acquire EPC Power for $4.4 billion. The transaction, which is subject to customary adjustments, is expected to close in the fourth quarter of 2026. Once finalized, EPC Power will be integrated into Flex's Cloud and Power Infrastructure (CPI) segment, which is poised for significant growth as demand for advanced power conversion technologies escalates in the context of evolving data center architectures.

Founded in 2010 and headquartered in California, EPC Power specializes in intelligent power conversion solutions tailored for data centers and utility applications. The company has established a strong market presence with over 15 gigawatts (GW) of power deployed across 62 countries. Its innovative technologies, including grid-forming capabilities and next-generation 800V data center power architectures, are designed to enhance power delivery efficiency, particularly for high-density AI infrastructure. EPC Power is projected to generate approximately $800 million in revenue in 2026, with expectations of organic growth of around 40% in 2027.

The strategic rationale behind this acquisition lies in Flex's intent to capitalize on the growing demand for AI infrastructure and the transition to next-generation power systems. As digital workloads increase, the need for more efficient and resilient power solutions becomes critical. By integrating EPC Power's advanced technologies with its existing power, cooling, and compute offerings, Flex aims to enhance its competitive position in the market and improve the EBITDA margin profile of its CPI segment. The acquisition will also enable Flex to provide a more comprehensive suite of solutions that address the complexities of modern data center operations.

The broader market implications of this transaction are significant, particularly as the demand for AI-driven services continues to rise. The shift towards higher power densities in data centers necessitates innovative power architectures that can support these evolving requirements. Flex's acquisition of EPC Power positions it well to meet these challenges, potentially setting a new standard in power conversion technology. As the market for AI infrastructure expands, companies that can deliver integrated and efficient power solutions are likely to gain a competitive edge.

In conclusion, the acquisition of EPC Power by Flex not only enhances its capabilities in the Cloud and Power Infrastructure sector but also reflects a strategic move to address the increasing demands of the digital economy. With anticipated revenue growth and a focus on advanced power conversion technologies, this transaction underscores the ongoing evolution of the power infrastructure landscape, driven by the rapid advancement of AI and data center technologies.