Flex has entered into a definitive agreement to acquire EPC Power for $4.4 billion, subject to customary adjustments, in a move that will strengthen the company’s position in power infrastructure for AI-driven data centres.
The transaction is expected to close in the fourth quarter of calendar 2026, following regulatory approvals and the satisfaction of other customary closing conditions. Once completed, EPC Power is expected to become part of Flex’s Cloud and Power Infrastructure (CPI) segment.
The deal comes as data centres are moving toward higher power densities to support increasingly demanding AI workloads. EPC Power’s power conversion technologies are designed for next-generation 800V data centre architectures, enabling more efficient power delivery to high-density AI infrastructure.
Founded in 2010 and headquartered in California, EPC Power develops intelligent power conversion solutions for both data centre and grid applications. Its portfolio combines internally developed hardware, software and controls with engineering and manufacturing operations in the U.S.
The company’s technology spans rectifiers and DC-DC conversion, with solid-state transformers also planned as part of its technology roadmap. EPC Power says it has more than 15 GW deployed across 62 countries, while its annual U.S. manufacturing capacity is expected to exceed 30 GW in 2027.
Powering the Next Generation of AI Data Centres
Flex said the acquisition will complement its existing portfolio across power, cooling and compute infrastructure, giving the company broader capabilities across data centre and electrical infrastructure.
EPC Power’s technology is expected to play a central role in next-generation data centre power systems, supporting grid stabilisation, backup power and the delivery of clean 800V power to modern GPUs.
The acquisition also positions Flex to benefit from the industry’s shift toward 800V power architectures as AI infrastructure continues to push data centre power requirements higher.
The transaction comes shortly before Flex’s planned separation of its CPI business. The company intends to spin off CPI as an independent publicly traded company in the first calendar quarter of 2027, meaning EPC Power is expected to become part of the new standalone business following the acquisition.
Financing and Advisors
The transaction is being supported by committed financing from Citi and Bank of America.
Evercore served as lead financial advisor to Flex, with BofA Securities, Citi and PJT Partners also providing financial advice. Freshfields LLP served as Flex’s legal counsel.
For EPC Power and its controlling shareholders, Goldman Sachs Alternatives and Cleanhill Partners, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC acted as financial advisors, while Vinson & Elkins LLP provided legal counsel.
The acquisition remains subject to customary regulatory approvals and other closing conditions.
Leadership Comments
“A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure,” said Revathi Advaithi, Chief  Executive Officer of Flex. “EPC Power brings leading power conversion and grid-forming technology that positions us to capitalize on this shift, delivering 800V power conversion today and building towards solid-state transformers. Together with our existing power, cooling and compute capabilities, this transaction expands our ability to design and deliver digital infrastructure as an integrated system.”
“EPC Power has built a leading position by solving some of the most difficult power conversion challenges through integrated hardware, software and controls,” said Jim Fusaro, Chief Executive Officer of EPC Power. “As demand for AI infrastructure accelerates, customers need power systems that are more intelligent, efficient and resilient. Together, we will combine our capabilities and expertise to help customers meet these challenges at scale.”
EPC Power is expected to generate approximately $800 million of revenue in calendar 2026, with organic revenue growth of approximately 40% expected in 2027. EBITDA margin is expected to expand by double-digit percentage points to approximately 30% in 2027.
The company is evaluating various financing alternatives and expects to fund this transaction with a combination of debt and equity.
To Know More: CLICK HERE
