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Get filing alertsFlex to acquire EPC Power for $4.4B, adding power conversion tech for AI data centers
Filed September 4, 2026 · Period ending September 3, 2026 · ~1 min read
Key Changes
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Flex signed a definitive agreement to acquire EPC Power for $4.4 billion in cash, subject to customary adjustments.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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EPC Power is expected to generate about $800 million revenue in 2026, with ~40% organic growth and ~30% EBITDA margin in 2027.
Exhibit 99.1 view on EDGAR → -
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The deal is expected to close in Q4 2026, pending HSR clearance and other conditions, with termination rights if not completed by Dec 31, 2026.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Flex secured a $4.4 billion 364-day bridge facility from Citi and BofA, to be replaced by permanent debt and equity financing.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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EPC Power will join Flex's Cloud and Power Infrastructure segment, which is planned to be spun off as an independent public company in Q1 2027.
Exhibit 99.2 view on EDGAR →
Summary
Flex announced a definitive agreement to acquire EPC Power for $4.4 billion in cash, subject to customary adjustments. EPC Power provides power conversion solutions for AI data centers and grid applications, and the deal is expected to close in the fourth quarter of 2026, pending regulatory approval.
The acquisition will be integrated into Flex's Cloud and Power Infrastructure segment, which Flex plans to spin off as an independent public company in Q1 2027. EPC Power is expected to generate approximately $800 million in revenue in calendar 2026, with organic revenue growth of about 40% expected in 2027 and EBITDA margin expanding to approximately 30%.
Flex has secured a $4.4 billion bridge facility from Citigroup and Bank of America to fund the transaction if permanent financing is not arranged before closing, and the company is evaluating a combination of debt and equity for permanent funding. The transaction is subject to customary closing conditions, including HSR clearance, and the purchase agreement includes termination rights if the deal is not completed by December 31, 2026, subject to two automatic three-month extensions. The spin-off of the Cloud and Power Infrastructure segment will require shareholder approval and SEC filings, including a proxy statement and a Form 10 registration statement.
Section-by-Section Diff
Event · Exhibit 99.1
Flex to acquire EPC Power for $4.4B, adding power conversion tech for AI data centers and grid applications.
Added in current filing · verify on EDGAR →
The transaction is expected to close in the fourth quarter of calendar 2026, at which time EPC Power is expected to become part of Flex’s Cloud and Power Infrastructure (CPI) segment.
The acquisition is expected to close in Q4 2026, and EPC Power will be integrated into Flex's Cloud and Power Infrastructure segment. Flex also plans to separate CPI into an independent publicly traded company in Q1 2027.
Added in current filing · view on EDGAR →
The company is evaluating various financing alternatives and expects to fund this transaction with a combination of debt and equity.
Flex plans to fund the acquisition with a mix of debt and equity, and is still evaluating financing alternatives. Committed financing is being provided by Citi and Bank of America.
Added in current filing · view on EDGAR →
EPC Power has more than 15 GW deployed across 62 countries and annual U.S. manufacturing capacity will surpass 30 GW in 2027.
EPC Power brings significant scale with over 15 GW deployed across 62 countries and U.S. manufacturing capacity expected to exceed 30 GW in 2027. The company's technology targets next-generation 800V data center power architectures.
Event · Exhibit 99.2
Flex to acquire EPC Power for $4.4B, expanding power conversion for AI data centers and grid applications.
Added in current filing · view on EDGAR →
Flex to acquire EPC Power
Flex announced an agreement to acquire EPC Power Corp., a provider of power conversion solutions for AI data centers and grid applications. The acquisition expands Flex's Cloud & Power Infrastructure segment.
Added in current filing · view on EDGAR →
$4.4B, subject to customary adjustments
The transaction is valued at $4.4 billion, subject to customary adjustments. This is a significant acquisition for Flex.
Added in current filing · view on EDGAR →
The company is evaluating various financing alternatives and expects to fund this transaction with a combination of debt and equity
Flex plans to fund the acquisition through a combination of debt and equity, though specific financing details are still being evaluated.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Purchaser has agreed to acquire the Shares for aggregate cash consideration of $4.4 billion, payable at the closing of the Transaction (the “Closing”), subject to customary adjustments as set forth in the Purchase Agreement (the “Consideration”).
Flex's wholly owned subsidiary will acquire all equity interests of EPC Power Corp. for $4.4 billion in cash, subject to customary adjustments. EPC Power is expected to become part of Flex's Cloud and Power Infrastructure business, which is planned to be spun off as an independent public company in Q1 2027.
Added in current filing · verify on EDGAR →
The Debt Commitment Letter provides for a senior unsecured 364-day bridge loan credit facility in an aggregate principal amount of up to $4.4 billion (the “Bridge Facility”), which is intended to be available to the Company to finance, together with other sources of funds, the Transaction and related expenses in the event that the Company has not obtained other permanent financing prior to the closing of the Transaction.
Flex has secured a $4.4 billion senior unsecured 364-day bridge facility from Citigroup and Bank of America to fund the acquisition if permanent financing is not arranged before closing. The company intends to replace the bridge facility with a combination of debt and equity financing.
Added in current filing · verify on EDGAR →
The Transaction is expected to close in the fourth quarter of 2026, subject to the satisfaction or waiver of certain customary closing conditions, including, among other things, the expiration or termination of the applicable waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
The acquisition is expected to close in Q4 2026, pending regulatory approval under the Hart-Scott-Rodino Act and other customary conditions. The purchase agreement includes termination rights if the deal is not completed by December 31, 2026, subject to two automatic three-month extensions.
Added in current filing · verify on EDGAR →
The Purchase Agreement contains a “locked box” mechanism in which the enterprise value of EPC Power has been fixed as of June 30, 2026 (the “Locked Box Date”).
The enterprise value of EPC Power is fixed as of June 30, 2026, with customary protections against value leakage between that date and closing. This provides price certainty for the transaction.
Event · Item 8.01 — Other Events
Flex announced a transaction and spin-off involving EPC Power, with details in press release and investor presentation exhibits.
Added in current filing · verify on EDGAR →
On September 3, 2026, the Company issued a press release announcing the transactions described in this Current Report on Form 8-K and included an investor presentation on its website.
Flex disclosed a transaction and a spin-off involving EPC Power. The press release and investor presentation are furnished as Exhibits 99.1 and 99.2, respectively. The filing does not provide financial terms or quantitative details in the body; those are in the exhibits.
Added in current filing · verify on EDGAR → · paraphrased
These forward-looking statements include, without limitation, statements regarding the Transaction and the Spin-Off; the expected timing of the Closing of the Transaction, the expected timing of the Spin-Off and the ability to complete each of the Transaction and the Spin-Off; the anticipated synergies and benefits of the Transaction and the Spin-Off, including enhanced strategic focus, financial flexibility and value creation for shareholders; the expected future performance of each of Flex and SpinCo, including the business of EPC Power; the impact of the Transaction on Flex’s Cloud and Power Infrastructure business; the expected sources and structure of financing for the Transaction; and statements about business strategies, growth opportunities, market position and financial outlook for each of Flex and SpinCo.
The filing includes extensive forward-looking statements about the transaction and spin-off, including expected synergies, strategic focus, financial flexibility, and value creation. It also lists numerous risks that could cause actual results to differ materially. No specific financial projections or deal terms are provided in the body of the 8-K.
Added in current filing · verify on EDGAR →
In connection with the proposed Spin-Off, Flex intends to file relevant materials with the SEC, including, among other filings, a proxy statement on Schedule 14A that will be mailed or otherwise disseminated to shareholders of Flex seeking their approval of the Spin-Off proposal. In addition, a registration statement on Form 10 (the “Form 10”) is expected to be filed with the SEC by SpinCo with respect to its common stock.
The spin-off requires shareholder approval via a proxy statement, and SpinCo will file a Form 10 registration statement for its common stock. Investors are urged to read these documents when available. This indicates the spin-off is subject to shareholder vote and SEC review.
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Figures/quotes linked to EDGAR · Narrative written by AI · Sep 7, 2026 · How we verify