Flex Ltd. announced the acquisition of EPC Power for $4.4 billion, significantly expanding its power conversion capabilities for data centers and grid applications. This strategic move is expected to bolster Flex's Cloud and Power Infrastructure (CPI) segment, which is slated for an independent public spin-off in 2027, and is projected to generate substantial revenue and EBITDA growth.
Flex Ltd. is acquiring EPC Power for $4.4 billion, a substantial investment aimed at strengthening its position in the rapidly growing data center and grid power conversion market. This acquisition is highly significant as it directly supports Flex's strategy to spin off its Cloud and Power Infrastructure (CPI) segment into an independent public company by Q1 2027, with EPC Power joining this segment. The deal is expected to add $800 million in 2026 revenue with strong organic growth and expanding EBITDA margins, indicating a positive long-term outlook for the new entity. For traders, this presents a clear opportunity in FLEX due to the strategic growth and the impending spin-off, though the financing through debt and equity will be a factor to watch.