Flex Closes $4.4B EPC Power Deal, Taps $4.4B in Fresh Debt
FLEX has more than doubled off its 52-week low of $53.07.
Summary
Flex completed its $4.4 billion acquisition of EPC Power, funded by $4.4 billion in new debt, strengthening its AI data center power capabilities ahead of the planned Axiom spin-off.
Updates
· SEC DEFA14A — On October 14, 2026, Flex's CEO emailed employees about the planned spin-off of its Cloud and Power Infrastructure segment into an independent, publicly traded company.
Key Events · M&A and Partnerships · FLEX
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EPC Power Acquisition Completed
On October 14, 2026, Flex completed the $4.4 billion cash acquisition of EPC Power, making it a wholly owned subsidiary within the Cloud and Power Infrastructure segment.
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New Debt Financing
To fund the acquisition, Flex borrowed $3.3 billion under a new term loan facility and $1.1 billion under a new bridge credit facility, both maturing October 13, 2027.
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Financial Covenants
The bridge credit agreement requires a Debt/EBITDA ratio not exceeding 4.50x and an Interest Coverage Ratio of at least 3.00x, tested quarterly.
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Spin-Off Timeline
EPC Power will be part of Axiom Solutions International, which Flex plans to spin off in Q1 2027; the $2.0 billion preferred investment in Axiom remains subject to regulatory approval.
Analysis · FLEX · Manufacturing
The $4.4 billion acquisition of EPC Power closed on October 14, 2026, with Flex funding the purchase through $3.3 billion from a new term loan and $1.1 billion from a new bridge facility. This deal brings differentiated power conversion technology for AI data centers and grid applications into Flex's Cloud and Power Infrastructure segment, which is slated to be spun off as Axiom Solutions in Q1 2027. The new debt carries a 364-day maturity and financial covenants (4.50x Debt/EBITDA, 3.00x Interest Coverage) that will constrain Flex's balance sheet until the spin-off and the $2.0 billion preferred investment close.
How filings like this one have moved
In the 30 days to Oct 15, 2026, 37% of the 992 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FLEX was trading at $109.65 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $41B. The 52-week trading range was $53.07 to $166.86. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.