Flex Signs Definitive $4.4B Agreement to Acquire EPC Power, Secures Bridge Financing
FLEX has more than doubled off its 52-week low of $53.07.
Summary
Flex signed a definitive agreement to acquire EPC Power for $4.4 billion in cash, backed by a $4.4 billion bridge facility from Citi and BofA. EPC Power brings grid-forming power conversion technology for AI data centers, with ~$800M revenue expected in 2026 and ~40% growth in 2027.
Key Events · M&A and Partnerships · FLEX
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Definitive $4.4B Acquisition Agreement Signed
Flex entered into a Stock Purchase Agreement to acquire all equity interests of EPC Power Corp. for $4.4 billion in cash, subject to customary adjustments. The deal uses a locked box mechanism fixing enterprise value as of June 30, 2026.
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$4.4B Bridge Financing Secured
Flex obtained a Senior Unsecured 364-Day Bridge Facility Commitment Letter for up to $4.4 billion from Citigroup Global Markets Inc., Bank of America, N.A. and BofA Securities, Inc. Flex intends to replace the bridge with permanent debt and equity financing.
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EPC Power Financial Projections
EPC Power is expected to generate approximately $800 million in 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.
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Q4 2026 Closing Timeline
The transaction is expected to close in the fourth quarter of calendar 2026, subject to HSR antitrust approval and customary closing conditions. The agreement includes termination rights through December 31, 2026, with automatic extensions to March 31, 2027 and June 30, 2027 under certain circumstances.
Analysis · FLEX · Manufacturing
Flex has moved from announcement to definitive agreement on its $4.4 billion acquisition of EPC Power, a power conversion technology provider for AI data centers. The 8-K reveals the full legal structure — a Stock Purchase Agreement with a locked box mechanism fixing enterprise value as of June 30, 2026, a $5 million escrow, and termination rights through December 31, 2026 with extensions to June 30, 2027. Critically, Flex has secured a 364-day bridge facility of up to $4.4 billion from Citi and Bank of America to fund the deal, with plans to replace it with permanent debt and equity financing. EPC Power is projected to generate approximately $800 million in revenue in calendar 2026, growing ~40% organically in 2027, with EBITDA margins expanding to approximately 30%. The acquisition positions Flex's Cloud and Power Infrastructure segment — slated for spin-off into an independent public company in Q1 2027 — to capture the shift to 800V data center power architectures driven by AI workloads. This is a transformative deal that reshapes Flex's portfolio and capital structure.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 41.1% of the 372 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.38%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FLEX was trading at $108.93 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $39.9B. The 52-week trading range was $53.07 to $166.86. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.