Flex agrees to buy EPC Power for $4.4 billion
Flex agreed to acquire EPC Power for $4.4 billion, subject to customary adjustments. The deal adds power conversion and grid-forming technology for data center and utility applications and is expected to close in the fourth quarter of 2026.
Flex agreed on Thursday to buy EPC Power for $4.4 billion, subject to customary adjustments. The deal is set to add power conversion capabilities, including grid-forming technology, for data center and utility applications. EPC Power says it provides intelligent power conversion solutions for data centers and grids, with more than 15 GW deployed across 62 countries and U.S. manufacturing capacity expected to exceed 30 GW in 2027.
Its technology supports next-generation 800V data center architectures, including rectifiers, DC-DC conversion and planned solid-state transformers, alongside Flex’s power, cooling and compute portfolio. Flex expects the transaction to close in the fourth quarter of 2026. EPC Power will join Flex’s Cloud and Power Infrastructure segment, which Flex plans to separate into an independent publicly traded company in the first quarter of 2027. The acquired business is expected to generate approximately $800 million in 2026 revenue, with organic growth of approximately 40% in 2027 and EBITDA margin expanding to approximately 30%.
Flex said it expects to finance the acquisition with a mix of debt and equity, subject to customary regulatory approvals and closing conditions. As of June 26, 2026, Flex had $2.84 billion in cash and cash equivalents. The company’s next major catalyst is expected on October 28, 2026, estimated, when it is due to report earnings. The EPS estimate is $1.04, up from 79 cents a year earlier, and revenue is seen at $8.18 billion, up from $6.80 billion a year earlier.
The stock’s valuation is listed at a P/E of 41.7x, with an average price forecast of $124.43 and a Buy rating. Recent analyst actions include Goldman Sachs reiterating Buy and lowering its target to $154.00 on July 30, Barclays reiterating Overweight and lowering its target to $144.00 on July 30, and Barclays reiterating Overweight and raising its target to $203.00 on June 4. ETF holdings cited include John Hancock Multifactor Mid Cap ETF at 0.67%, Avantis US Mid Cap Value ETF at 1.26% and Avantis US Mid Cap Equity ETF at 0.54%. These funds, any significant inflows or outflows for these ETFs could force automatic buying or selling of the stock.
FLEX stock price activity: Flex shares were up 1.47% at $109.48 in premarket trading on Friday, according to Pro data.