Flex Acquires EPC Power in $4.4 Billion Deal to Expand AI Infrastructure Exposure
Flex Ltd. (NASDAQ:FLEX) announced on September 3, 2026, its acquisition of power conversion systems company EPC Power for $4.4 billion. The deal is intended to strengthen Flex's position in the growing market for electricity infrastructure serving artificial intelligence data centers and other digital applications such as utility-scale energy storage and microgrids. The transaction is expected to close by Q4 2026, with financing provided through a mix of debt and equity from Citi and Bank of America. Flex's CEO emphasized the strategic importance of EPC Power’s advanced power conversion technology in supporting next-generation digital infrastructure needs. The acquisition also supports Flex's plan to spin off its Cloud and Power Infrastructure segment into an independent public company by Q1 2027. However, analysts note that the high valuation poses risks for Flex, including balance sheet pressure and integration challenges ahead of a planned business separation. Additionally, concerns about overinvestment in AI infrastructure raise potential headwinds if demand growth slows.
Tickers: $FLEX
Topics: AI Infrastructure Corporate Strategy Data Centers Power Systems