The deal brings EPC Power—a provider of mission-critical power conversion for grids and data centers—directly into the fold ahead of a planned public spin-off. Flex Chief Executive Revathi Advaithi pointed to a generational shift in power density requirements as the primary catalyst for the move, noting that the combination of existing compute and cooling assets with EPC’s hardware creates a more integrated product for digital infrastructure clients.
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Flex Acquires EPC Power for $4.4 Billion to Bolster Data Center Spin-off
Flex is betting $4.4 billion on EPC Power, an acquisition designed to anchor the upcoming separation of its cloud and power infrastructure business. By integrating EPC’s specialized conversion technology, the company aims to secure a dominant position in the rapidly expanding market for artificial intelligence-driven data center architectures.
Financial performance at EPC remains robust, with the firm currently tracking toward $800 million in annual revenue and projecting 40% organic growth in the coming year. Flex intends to fund the transaction through a mix of debt and equity, with the acquisition set to close by late 2026. The subsequent spin-off of the combined infrastructure unit is scheduled for the first quarter of 2027, a move intended to enhance the margin profile of the new standalone entity.
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