Flex has agreed to acquire EPC Power for $4.4 billion, expanding its data center power and thermal management portfolio. The transaction, subject to regulatory approval, is expected to close in Q4 2026. EPC will join Flex's Cloud and Power Infrastructure segment, building on an existing partnership between the two companies. The acquisition is positioned as a way to strengthen Flex's integrated "grid-to-chip" power offering, a term that signals an ambition to cover the full electrical path from utility input to computing silicon. For a contract manufacturer headquartered in Singapore that already supports data center power and cooling, adding a specialist in 800V power systems for AI data centers represents a direct move into a higher-value segment of the infrastructure stack.
The material facts are limited but specific. The purchase price is $4.4 billion, and the expected closing window is Q4 2026. EPC Power develops 800V power systems for AI data centers, including digital rectifiers and solid-state transformers. The company will operate within Flex's Cloud and Power Infrastructure segment. Flex also plans to spin off that same Cloud and Power Infrastructure business, meaning EPC Power would become part of a unit that Flex intends to separate. Goldman Sachs and J.P. Morgan advised EPC Power and its shareholders, while Vinson & Elkins provided legal counsel. No financing terms, revenue figures, or valuation multiples for EPC Power are disclosed in the source.
The evidence comes from a single secondary source, Baxtel, published on September 4, 2026. The report includes a direct quote from Jim Fusaro, CEO of EPC Power, who said: "What we accomplished over the last four years demonstrates the power of strong partnerships and a shared commitment to innovation. Together with Goldman Sachs Alternatives and Cleanhill Partners, EPC Power emerged as a US technology leader in power conversion solutions that enable the next generation of data centers, AI computing, and grid modernization." Fusaro also said EPC expanded its domestic manufacturing footprint nearly tenfold, "strengthening America's industrial base and reinforcing the critical role of US innovation in powering the future economy." The quote identifies Goldman Sachs Alternatives and Cleanhill Partners as prior backers of EPC Power, though the source does not specify their ownership stakes or exit economics.
The sector implication is that data center power conversion is becoming a strategic acquisition target as AI computing demands higher voltage architectures. EPC's focus on 800V systems, digital rectifiers, and solid-state transformers aligns with the industry shift toward more efficient power delivery for dense AI clusters. By acquiring EPC, Flex gains a domestic US manufacturing footprint that EPC says grew nearly tenfold, which could matter for supply chain resilience and for customers with domestic content preferences. The planned spin-off of Flex's Cloud and Power Infrastructure business adds another layer: the acquisition may be intended to make that unit more attractive or complete before separation, though the source does not state this motive explicitly.
The main limitation is the thin evidence base. The dossier contains one source read in full, and several facts are uncorroborated. The source does not provide EPC Power's revenue, profitability, employee count, or customer base. It does not explain how the $4.4 billion price was determined, whether the deal includes cash, stock, or debt, or what regulatory approvals are required. The relationship between the acquisition and the planned spin-off is not explained. What to watch: whether the deal closes in Q4 2026 as expected, which regulators review it, and whether Flex provides additional financial detail about EPC Power in subsequent disclosures. The spin-off timeline and structure will also determine whether EPC Power ultimately operates as part of Flex or as part of a separately traded entity.