Flex Ltd. Completes $1.1 Billion EPC Power Acquisition to Scale AI Infrastructure

Key numbers

Deal value	$1.1B
Share of market cap	2.7%
Share of annual revenue	3.9%

Key highlights

• Flex borrowed $1.1 billion under a senior bridge credit facility to fund the acquisition
• EPC Power specializes in 800V data center power architectures and grid-forming technology
• The acquired business will be integrated into the Cloud and Power Infrastructure segment
• Flex plans to spin off the segment as Axiom Solutions International in Q1 2027
• EPC Power has deployed over 15 GW of technology for grid stabilization and backup power

What Is the Deal?

Flex Ltd. (NASDAQ: FLEX) has finalized the acquisition of EPC Power Corp., a provider of intelligent power conversion solutions. The transaction, completed on October 14, 2026, transitions EPC Power into Flex’s Cloud and Power Infrastructure business. To finance the closing, Flex secured and fully drew down a $1.1 billion senior bridge credit facility. This acquisition follows a definitive agreement originally signed in September 2026 with Charge Parent, LLC. The move represents a significant expansion of Flex’s technological footprint in the high-growth AI infrastructure and grid stabilization markets, positioning the firm to manage rising power demands.

Up 2.4% over the last month ($108.32 on 14 Sep → $110.88 on 13 Oct). Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$108.32
15 Sep	$108.00
16 Sep	$107.90
17 Sep	$109.02
18 Sep	$108.51
21 Sep	$111.61
22 Sep	$114.45
23 Sep	$112.30
24 Sep	$112.40
25 Sep	$114.68
28 Sep	$113.04
29 Sep	$113.83
30 Sep	$109.99
1 Oct	$112.78
2 Oct	$116.61
5 Oct	$116.76
6 Oct	$121.38
7 Oct	$119.34
8 Oct	$114.74
9 Oct	$119.83
12 Oct	$117.24
13 Oct	$110.88

Deal Structure & Terms

• The $1.1 billion senior bridge credit facility was arranged by Citibank, N.A. as administrative agent.
• The facility matures on October 13, 2027, precisely 364 days after the funding date.
• Interest is calculated at a floating rate based on Term SOFR or a Base Rate plus an applicable margin.
• The agreement requires maintaining a Debt/EBITDA ratio not exceeding 4.50 to 1.00.
• Flex is required to maintain an Interest Coverage Ratio of not less than 3.00 to 1.00.

Strategic Rationale

The integration of EPC Power provides Flex with proprietary hardware and software for grid-forming technology and power conversion. These capabilities are critical for next-generation 800V data center architectures, which are increasingly required to support high-density AI workloads. By adding EPC Power’s 15 GW of deployed technology, Flex aims to offer more resilient and efficient power solutions for data centers and utility-scale grid applications. This acquisition serves as a strategic precursor to the planned spin-off of the Cloud and Power Infrastructure segment into a separate public entity, Axiom Solutions International, Inc., expected in early 2027.

Business Overview

• Flex is a global manufacturing partner operating in 30 countries, delivering lifecycle services from concept to scale.
• EPC Power combines U.S.-based engineering and manufacturing to support grid stabilization and backup power.
• The upcoming Axiom spin-off has secured a $2.00 billion investment commitment from General Catalyst and Koch Equity Development.
• Flex's Cloud and Power Infrastructure segment focuses on solving heat and scale challenges for data center deployment.
• The company maintains a high market presence with annual revenues of approximately $27.9 billion and a trailing P/E ratio of 42.8x.

Expansion in the AI Era

“Together, we can help customers address the growing power demands of AI infrastructure with more efficient, resilient and integrated solutions.”

Management commentary

“EPC Power adds differentiated power conversion and grid-forming technology to our capabilities across power, cooling and compute. Together, we can help customers address the growing power demands of AI infrastructure with more efficient, resilient and integrated solutions.”

FLEX LTD. · financial snapshot

Share price	$110.88
Market cap	$41.0B
Revenue (annual)	$27.9B
P/E (TTM)	42.8×
1-month price change	-4.23%
Sector	TechnologyElectronic Components

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.