Flex has announced a definitive agreement to acquire intelligent power conversion provider EPC Power in a transaction valued at $4.4 billion, subject to customary financial adjustments. Scheduled to close in the fourth quarter of calendar year 2026, the strategic acquisition will initially integrate EPC Power into Flex’s Cloud and Power Infrastructure (CPI) business segment. In a secondary strategic move, Flex plans to spin off the expanded CPI division into an independent, publicly traded corporate entity during the first quarter of calendar year 2027.
Scaling of the Next-Generation 800V AI Power Architecture
EPC Power is headquartered in Poway, California, and was established in 2010. It offers design and manufacture of software-defined power conversion systems optimized for use in utility grids and hyperscale data centers. The company’s proprietary system integrates hardware, software, and control systems that enable the next generation of 800V data center systems, which optimize power delivery to artificial intelligence compute clusters through digital rectifiers, DC-DC converters, and solid-state transformer technologies.
EPC Power has installed 15 GW of capacity in 62 countries and is expected to exceed 30 GW of production in the United States in 2027.
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The unified technology portfolio embeds EPC Power’s high-efficiency conversion hardware at the core of Flex‘s power, liquid cooling, and compute solutions. By streamlining power delivery from the utility grid directly to GPU-dense server racks, the combined architecture helps data center operators maintain grid stability, deliver clean 800V power, and mitigate energy bottlenecks associated with intensive AI training and inference workloads.
“A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure,” said Revathi Advaithi, Chief Executive Officer of Flex. “EPC Power brings leading power conversion and grid-forming technology that positions us to capitalize on this shift, delivering 800V power conversion today and building towards solid-state transformers. Together with our existing power, cooling and compute capabilities, this transaction expands our ability to design and deliver digital infrastructure as an integrated system.”
“EPC Power has built a leading position by solving some of the most difficult power conversion challenges through integrated hardware, software and controls,” said Jim Fusaro, Chief Executive Officer of EPC Power. “As demand for AI infrastructure accelerates, customers need power systems that are more intelligent, efficient and resilient. Together, we will combine our capabilities and expertise to help customers meet these challenges at scale.”
Financial Outlook and Advisory Representation
EPC Power is projected to generate approximately $800 million in revenue during calendar year 2026, with anticipated organic revenue growth of roughly 40% in calendar year 2027. EBITDA margins are expected to expand by double-digit percentage points, reaching approximately 30% in 2027.
Flex intends to fund the transaction through a combination of debt and equity instruments, with capital structure evaluations currently underway. The acquisition remains subject to customary closing conditions, including required regulatory approvals.
