Flex has completed its $4.4 billion acquisition of EPC Power. That's a lot of money for power electronics.
EPC Power develops power electronics and grid-forming conversion technology.
I read the price as a signal that Flex sees power conversion as a must-have, not a nice-to-have.
Flex announced plans to separate its Cloud and Power Infrastructure business in May 2026, subsequently naming the new company Axiom in September. The separation is targeted for the first quarter of calendar 2027.
Axiom will combine power distribution, power conversion, liquid cooling, compute infrastructure and modular data center systems. EPC Power adds software-defined power conversion and grid-forming technologies, including systems designed to support the transition toward 800VDC architectures for high-density AI computing.
On October 5, Flex announced a $2 billion convertible preferred equity investment in Axiom, led by General Catalyst and Koch Equity Development, alongside other investors. The investment establishes an initial enterprise valuation of $37.5 billion for Axiom. Flex said the proceeds would help finance the EPC Power acquisition and support Axiom’s balance sheet as it prepares to operate independently.