Flex, the contract manufacturer that builds everything from data-center power systems to medical devices, has agreed to acquire EPC Power, a maker of power-conversion equipment for data centers and electrical grids, for $4.4 billion, the companies announced this week, according to Flex's investor announcement. The deal will be funded through a mix of debt and equity, with committed financing from Bank of America and Citi.
Betting on the AI Power Buildout
EPC Power, founded in 2010 and based in California, makes grid-forming inverters and other power-conversion technology used in data centers and utility-scale grid projects; the company has more than 15 gigawatts of equipment deployed across 62 countries and is on track for roughly $800 million in revenue this year. Flex expects the business to grow organic revenue by about 40% in 2027, with EBITDA margins expanding toward 30%, according to PR Newswire.
A generational shift in power architecture is underway, driven by rising power density.
Revathi Advaithi, chief executive, Flex
Advaithi added that the acquisition strengthens the company's ability to "design and deliver digital infrastructure as an integrated system." EPC Power chief executive Jim Fusaro said data-center and grid customers "need power systems that are more intelligent, efficient and resilient" as facilities shift toward next-generation, higher-voltage power architectures.
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 segment — a unit Flex plans to spin off as an independent, publicly traded company in the first quarter of 2027, giving investors a pure-play vehicle for the power-hungry data-center buildout. The transaction adds to a wave of dealmaking this year as manufacturers race to secure the transformers, switchgear and power-conversion equipment needed to keep pace with AI-driven electricity demand, which has strained grid capacity in data-center hubs from Virginia to Texas.
The acquisition is Flex's largest in years and signals how thoroughly the AI buildout has reordered priorities across the electronics-manufacturing industry, where contract manufacturers that once competed mainly on assembly cost are now bidding for control of the power hardware that determines how quickly a data center can be energized. With grid interconnection queues stretching years in some U.S. markets, developers are increasingly willing to pay a premium for suppliers like EPC Power that can shorten the path from signed lease to operating campus.
SOURCES — Flex — Flex to Acquire EPC Power, Adding Leading Power Conversion Capabilities for AI Data Centers and Grid Applications · PR Newswire — EPC Power Announces Sale to Flex for $4.4 Billion
