Flex to Acquire EPC Power, Adding AI Data Center Power Conversion Capabilities
FLEX has more than doubled off its 52-week low of $53.07.
Summary
Flex is acquiring EPC Power, a provider of power conversion technology for AI data centers and grid applications, in a deal valued at $4.4 billion. The acquisition is expected to enhance the growth and EBITDA margin profile of Flex's Cloud and Power Infrastructure segment, which Flex plans to separate into an independent publicly traded company in the first calendar quarter of 2027. EPC Power is expected to generate about $800 million of revenue in calendar 2026. Flex expects to fund the transaction with a combination of debt and equity. The deal follows Flex's recent divestiture of Sheldahl and its Q1 FY2027 results, which included the $1.2B EPP acquisition. No financial terms beyond the $4.4 billion value were disclosed.
At the time of this announcement, FLEX was trading at $107.89 on NASDAQ in the Technology sector, with a market capitalization of approximately $39.9B. The 52-week trading range was $53.07 to $166.86. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.