The $4.4B acquisition of EPC Power is a transformative bolt-on that positions Flex to capitalize on the AI infrastructure buildout and the shift to 800V data center power architectures. The deal is expected to be margin-accretive, with EPC Power targeting ~30% EBITDA margins by 2027. Monitor regulatory approval (HSR) and the planned Q1 2027 spin-off of the Cloud & Power Infrastructure segment, which could unlock additional value. The bridge facility provides financing certainty, but the eventual debt/equity mix will determine the impact on Flex's leverage and equity dilution.
Price Chart
Executive Summary
Flex Ltd. has entered into a definitive agreement to acquire EPC Power Corp. for $4.4 billion in cash, adding leading power conversion capabilities for AI data centers and grid applications. The acquisition is expected to close in Q4 2026 and will become part of Flex's Cloud and Power Infrastructure segment, which Flex plans to spin off into an independent publicly traded company in Q1 2027. Flex has secured a $4.4 billion bridge loan facility to finance the transaction, which it intends to replace with a combination of debt and equity financing.
Key Financial Metrics
Key Facts
- Flex agreed to acquire EPC Power Corp. for $4.4 billion in cash.
- EPC Power is expected to generate approximately $800 million in revenue in calendar 2026, with ~40% organic revenue growth expected in 2027.
- EPC Power's EBITDA margin is expected to expand to approximately 30% in 2027.
- The transaction is expected to close in Q4 2026, subject to regulatory approvals.
- Flex plans to separate its Cloud and Power Infrastructure business (including EPC Power) into an independent public company in Q1 2027.
- Flex secured a $4.4 billion senior unsecured 364-day bridge loan facility from Citi and Bank of America.
- The purchase price is subject to a locked-box mechanism with a fixed enterprise value as of June 30, 2026.
Financial Impact
$4.4 billion all-cash acquisition; EPC Power expected to generate ~$800M revenue in CY2026 with ~40% growth in 2027 and ~30% EBITDA margin
Risk Factors
- Regulatory approval (HSR) may delay or impose conditions on the transaction.
- Integration of EPC Power may be more difficult or costly than expected.
- The planned spin-off of the Cloud & Power Infrastructure business may not occur as planned or may not achieve the expected benefits.
- Financing the transaction with debt will increase leverage; equity issuance would dilute existing shareholders.
- Forward-looking statements about EPC Power's revenue and margin growth are projections and may not materialize.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (FLEX) — Batch item 1 | 0001193125-26-382492 |
| Document: d108491d8k.htm | 0001193125-26-382496 |
| Document: d108491dex991.htm | 0001193125-26-382496 |
| Document: d108491dex992.htm | 0001193125-26-382492 |
| Document: 0001193125-26-382492-index-headers.html | 0001193125-26-382685 |
| Document: 0001193125-26-382492-index.html | 0001193125-26-382691 |
| Document: 0001193125-26-382492.txt | 0001193125-26-382492 |
| DEFA14A Filing (FLEX) — Batch item 8 | 0001193125-26-382496 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 16d ago | DEFA14A | $107.90 $111.61 | ▲ +3.44% | ▲ +0.60% | $117.18 (+8.60%) |
Sep 15, 2026 16d ago | DEFA14A | $107.90 $111.61 | ▲ +3.44% | ▲ +0.60% | $117.18 (+8.60%) |
Sep 15, 2026 16d ago | DEFA14A | $107.90 $111.61 | ▲ +3.44% | ▲ +0.60% | $117.18 (+8.60%) |
Sep 15, 2026 17d ago | 8-K | $108.00 $108.51 | ▲ +0.47% | ▼ −0.35% | $117.18 (+8.50%) |
Sep 4, 2026 28d ago | 8-K / DEFA14A | $109.51 $108.32 | ▼ −1.09% | ▲ +0.12% | $117.18 (+7.00%) |
Jul 31, 2026 9w ago | DEFA14A | $113.75 $121.35 | ▲ +6.68% | ▲ +3.17% | $117.18 (+3.02%) |
Jul 29, 2026 9w ago | DEFA14A | $111.91 $122.65 | ▲ +9.60% | ▲ +5.97% | $117.18 (+4.71%) |
Jul 29, 2026 9w ago | 8-K | $103.02 $121.88 | ▲ +18.31% | ▲ +12.78% | $117.18 (+13.74%) |
Jul 29, 2026 9w ago | 8-K | $103.02 $121.88 | ▲ +18.31% | ▲ +12.78% | $117.18 (+13.74%) |
Jul 27, 2026 9w ago | DEFA14A | $116.07 $113.75 | ▼ −2.00% | ▼ −3.07% | $117.18 (+0.96%) |
US Market Status
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