Strategic Overview of the Acquisition

Flex has entered into a definitive agreement to acquire EPC Power in a transaction valued at $4.4 billion, subject to customary adjustments. Announced on September 7, 2026, the deal is expected to close in the fourth quarter of the calendar year. Upon completion, EPC Power will be integrated into Flex's Cloud and Power Infrastructure (CPI) segment. In a significant structural move, Flex plans to separate the CPI segment into an independent publicly traded company during the first calendar quarter of 2027. This strategic consolidation underscores a major pivot toward advanced power infrastructure.

Technical Architecture and 800V Power Systems

At the core of this acquisition is the industry's urgent transition to 800V data center power architectures. Founded in 2010 and headquartered in California, EPC Power specializes in intelligent power conversion solutions. The company's platform is specifically engineered for next-generation 800V environments, enabling power delivery for higher-density AI infrastructure. EPC Power's technical capabilities span across rectifiers, DC-DC conversion, and the planned development of solid-state transformers. By combining internally developed hardware, software, and controls, EPC's technology will sit at the core of next-generation data center power systems. These systems are designed to provide critical grid stabilization, reliable backup power, and clean 800V power necessary to drive modern, high-performance GPUs.

Manufacturing Scale and Global Footprint

EPC Power brings substantial manufacturing and deployment scale to Flex, combining U.S.-based engineering with robust production capabilities. The company has already deployed more than 15 GW of capacity across 62 countries. Looking ahead, EPC Power's annual U.S. manufacturing capacity is projected to surpass 30 GW by 2027. This massive scaling of domestic production aligns with the escalating energy demands of digital infrastructure and ensures that Flex can meet the localized manufacturing requirements increasingly favored by hyperscale data center operators.

Market Context and Financial Projections

The financial trajectory of EPC Power highlights the explosive growth within the data center power sector. The company is expected to generate approximately $800 million in revenue for the calendar year 2026. Furthermore, organic revenue growth is projected at approximately 40% in 2027, accompanied by a significant expansion in profitability, with EBITDA margins expected to reach approximately 30% in the same year. To fund the $4.4 billion transaction, Flex is evaluating various financing alternatives, expecting to utilize a combination of debt and equity. Committed financing for the deal is being provided by Citi and Bank of America. The transaction involves a comprehensive network of advisors:

  • Flex Financial Advisors: Evercore (lead), BofA Securities, Citi, and PJT Partners.
  • Flex Legal Counsel: Freshfields LLP.
  • EPC Power Financial Advisors: Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.
  • EPC Power Legal Counsel: Vinson & Elkins LLP.

Implications for AI Data Center Infrastructure

The acquisition directly addresses the escalating power density requirements driven by artificial intelligence workloads. Revathi Advaithi, Chief Executive Officer of Flex, noted that a generational shift in power architecture is underway due to rising power density and the changing demands of digital infrastructure. By integrating EPC Power's leading power conversion and grid-forming technology with Flex's existing power, cooling, and compute portfolio, the combined entity can design and deliver digital infrastructure as a fully integrated system. Jim Fusaro, CEO of EPC Power, emphasized that as AI infrastructure demand accelerates, customers require power systems that are more intelligent, efficient, and resilient. The merger of their capabilities will allow them to solve complex power conversion challenges at scale.

Future Outlook and Industry Transformation

The integration of EPC Power positions Flex to capitalize on the ongoing transition to next-generation 800V data center power architectures. While the immediate focus is on delivering 800V power conversion today, the strategic roadmap includes building towards solid-state transformers, which promise even greater efficiency and power density. As AI workloads continue to push the boundaries of compute density, the synergy between EPC's advanced power conversion and Flex's comprehensive infrastructure portfolio will be critical. This acquisition not only expands Flex's presence in the electrical infrastructure market but also solidifies its role in enabling the next generation of AI-driven digital transformation.