Flex completes $4.4 billion EPC Power acquisition to add AI power infrastructure

Flex has completed its acquisition of EPC Power, adding power-conversion and grid-support technology to its AI infrastructure business, according to an October 20 Zacks Equity Research article. The purchase, announced in September as a $4.4 billion cash-and-stock deal, brings equipment designed for next-generation data centers alongside technology already deployed in grid applications.

The completion moves the transaction beyond the agreement Flex announced on September 3. At that point, the company expected to close in the fourth quarter of 2026, subject to regulatory approvals and other closing conditions. EPC Power is joining Flex’s Cloud and Power Infrastructure business, adding to a portfolio that already spans computing equipment, cooling and power.

Grid support meets the 800-volt transition

EPC Power supplies systems for data centers, microgrids and large utility operations. Its technology combines proprietary hardware, software and controls to support grid stabilization and backup power. The acquisition also brings U.S.-based engineering and manufacturing capabilities, rather than only a collection of designs or software.

The platform is designed to support 800-volt data-center power systems. That fits Flex’s stated development path: management has described work on 400-volt programs, followed by 800-volt architectures. EPC Power’s equipment pipeline includes rectifiers and DC-to-DC converters—devices that change electricity into the form or voltage equipment needs—as well as upcoming solid-state transformer technology.

Flex chief executive Revathi Advaithi framed the combination as a way to offer integrated computing, cooling and power management. EPC Power chief executive Jim Fusaro emphasized a related operating problem: helping data-center customers manage unpredictable electricity demand from intensive AI computing. Those are the companies’ stated reasons for combining the businesses, not measured benefits from the newly completed integration.

A completed purchase, a forecast financial payoff

The September deal announcement put EPC Power on track for roughly $800 million in calendar-year 2026 revenue. Flex anticipated about 40% organic revenue growth in 2027, meaning growth excluding acquisitions, alongside double-digit margin expansion. It projected that the company’s margin on earnings before interest, taxes, depreciation and amortization could move toward 30%. These figures were expectations outlined when the agreement was announced.

Flex’s funding plan paired debt and equity, with committed debt financing from Bank of America and Citi. That describes how Flex planned to fund the acquisition; the cash-and-stock description concerns the transaction’s consideration. The October completion article did not disclose a deal value, so the $4.4 billion figure remains the price reported with the original agreement.

The business receiving EPC Power is already growing. Flex’s Cloud and Power Infrastructure segment generated $2.2 billion in first-quarter fiscal 2027 revenue, up 35% from a year earlier. Adjusted operating income was $214 million, with a 9.7% operating margin. Flex attributed the revenue increase to strength in power and the ramp-up of new cloud and cooling programs.