Flex to Acquire EPC Power for $4.4B, Boosting AI Data‑Center Power Capabilities

SentiSense · Published Sep 8, 2026, 11:06 AM ET · Updated Sep 8, 2026, 8:44 PM ET

Flex Ltd. announced a $4.4 billion acquisition of EPC Power to strengthen its AI‑focused data‑center power portfolio, especially in 800‑volt architectures. EPC Power is projected to generate $800 million in revenue in 2026 with 40% organic growth expected in 2027 and EBITDA margins near 30%. The deal will be folded into Flex's CPI segment, which the company plans to spin off as a separate public entity in the first quarter of 2027.

Flex (FLEX) Ltd. disclosed a strategic purchase of EPC Power for $4.4 billion, marking a significant investment aimed at expanding its capabilities in AI‑driven data‑center power solutions, particularly the emerging 800‑volt architecture that promises higher efficiency and density for next‑generation computing workloads .

The acquisition aligns with Flex's broader push to deepen its presence in the fast‑growing AI infrastructure market. EPC Power is expected to deliver $800 million in revenue for 2026 and is forecasting a robust 40% organic growth trajectory into 2027, with its own EBITDA margins projected to rise to roughly 30%, indicating strong profitability potential for the acquired business .

Flex plans to integrate EPC Power into its CPI segment, a business unit that the company intends to spin off as an independent public company in the first quarter of 2027 . This spin‑off could provide investors with clearer exposure to Flex's high‑margin, technology‑focused manufacturing operations while allowing the core business to concentrate on its diversified electronics portfolio.

Industry observers will watch how the combined Flex‑EPC Power platform leverages the 800V power architecture to meet the escalating power density demands of AI data centers, a sector poised for multi‑digit growth. The deal also raises questions about competitive dynamics, as other contract manufacturers and infrastructure providers race to secure similar capabilities. Flex's ability to successfully integrate EPC Power and execute the planned spin‑off will be key determinants of the long‑term value creation from this acquisition.

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