Flex to Acquire Power-Conversion Maker EPC Power for $4.4 Billion

Flex Ltd. said on 3 September 2026 that it has signed a definitive agreement to acquire EPC Power, a California-based maker of power-conversion systems for data centers and grid applications, for $4.4 billion. The deal, funded through a mix of debt and equity financing from Citi and Bank of America, is expected to close in the fourth quarter of 2026; EPC Power will then join Flex’s Cloud and Power Infrastructure (CPI) segment, which Flex has already said it plans to spin off as an independently traded public company in the first quarter of 2027.

What is known

Per Flex’s SEC filing and EPC Power’s own release, EPC Power builds power-conversion hardware — digital rectifiers, DC-DC converters, and a roadmap of solid-state transformers — aimed at the emerging 800V DC architecture that AI data centers are adopting to move more power at lower current as rack densities rise. Founded in 2010, the company says it has deployed more than 15GW of equipment across 62 countries and opened a 167,000-square-foot manufacturing plant in South Carolina in July 2026, with annual capacity of 27-40GW that it expects to exceed 30GW in 2027.

Flex projects EPC Power’s 2026 revenue at roughly $800 million, with about 40% organic growth in 2027 and EBITDA margin expansion toward 30%. Data Center Knowledge quotes analyst Neil Osnato describing the shift as one where “power conversion is moving from a supporting component to a strategic control point in AI infrastructure” — framing AI buildout as increasingly a power-systems problem, not just a compute one.

What it means for buyers of power

This is the second power-hardware acquisition we have logged in three days, after Vertiv’s purchase of UIG’s microgrid business on 4 September — a pattern of larger integrators buying up specialized power-conversion and on-site generation vendors rather than sourcing them as components. For operators and colocation buyers, the practical read is that lead times and pricing for power-conversion equipment — rectifiers, transformers, switchgear — are becoming as strategically important to track as the electricity tariffs we publish on /energy/, where we track rates across 49 markets in 52 countries alongside the roughly 24,400MW of operational capacity in our facility catalog. Grid-interconnection bottlenecks in markets like Virginia, where Dominion’s new large-load rate class takes effect in January 2027, are only part of the constraint; equipment supply and manufacturing capacity for the power-conversion gear behind the meter is the other half, and consolidation among suppliers tends to precede price and lead-time shifts rather than follow them.

EPC Power’s product line also touches grid-scale battery storage inverters, adjacent to the BESS price benchmarks we track separately — worth watching if Flex’s spin-off strategy changes how aggressively EPC Power prices storage-adjacent hardware once it operates as a standalone public company.

What we don’t know

Flex and EPC Power have not disclosed how the $4.4 billion splits between cash, debt, and equity components beyond naming Citi and Bank of America as financing partners, nor have they detailed how existing EPC Power customer contracts carry over once the business moves into the CPI unit ahead of its planned 2027 spin-off. Neither company has said whether the deal changes pricing or lead times for equipment already on order.