Flex (NASDAQ: FLEX) has agreed to acquire EPC Power in a deal valued at $4.4bn, the company confirmed on 3 September 2026.
The transaction is expected to close in the fourth quarter of calendar 2026, subject to customary adjustments, according to the deal announcement.
Flex EPC Power acquisition folds into data-centre push
EPC Power, a San Diego-area maker of power conversion equipment for data centres and utility-scale energy storage, will become part of Flex’s Cloud and Power Infrastructure (CPI) segment once the deal closes, the company said.
Flex plans to separate CPI into an independent, publicly traded company in the first calendar quarter of 2027, meaning the newly acquired assets would sit inside CPI for barely two quarters before that unit becomes a standalone stock.
Flex expects EPC Power’s organic revenue to grow roughly 40% in 2027, with an EBITDA margin of around 30%, according to Yahoo Finance Canada. Separately, Flex has set a CPI growth target of 65% to 75% for fiscal 2027 as it prepares the spin-off, Seeking Alpha reported.
Second ownership change in under five years
EPC Power was majority-acquired by Goldman Sachs Asset Management’s Sustainable Investing arm and Cleanhill Partners in 2022, according to Energy-Storage.News. The Flex deal marks a second major change of hands for the manufacturer inside five years.
The company has also been expanding US manufacturing capacity to meet demand for AI data-centre power hardware, Solar Power World reported in July, a trend that underpins the strategic logic for Flex’s purchase.
Flex’s financial backdrop
Flex reported net income of $239m on diluted earnings per share of $0.64 for its fiscal third quarter, the period ended 26 December 2025, according to a 10-Q filed with the SEC. That followed net income of $199m in the prior quarter and $192m the quarter before that, filings show, a run of steady if unspectacular profitability heading into the largest acquisition in the company’s recent history.
Quarterly revenue has climbed steadily too. Flex posted $6.575bn in the quarter ended 27 June 2025, rising to $6.804bn three months later and $7.058bn in the December quarter, before jumping to $7.928bn in the quarter ended 26 June 2026, its most recent reported figure ahead of the EPC Power announcement, according to SEC filings. Diluted EPS for that latest quarter came in at $0.76, filings show, the highest in the sequence of results Flex has reported since mid-2024.
The wider financing backdrop remains tight by historical standards. The 10-year US Treasury yield stood at 4.79% and the 2-year at 4.39% as of 2 September 2026, according to data from the Federal Reserve Bank of St. Louis, leaving the yield curve modestly positive at 0.43 percentage points. Those levels bear on the cost of debt for any multibillion-dollar acquisition financed with borrowed capital, though Flex has not disclosed how it intends to fund the EPC Power purchase.
What the spin-off timeline means for investors
The structure of the deal is arguably more consequential than the headline price. Flex is buying EPC Power to bulk up the CPI segment specifically so that unit can be spun off as a standalone public company in the first quarter of 2027 – meaning today’s seller is effectively pre-loading the asset base of a business that will not trade separately for another two quarters.
Flex shares closed at $108.00 on 4 September 2026, up 1.92% on the day but down 14.01% over the preceding 20 trading days, according to consolidated US exchange data. Trading volume that day ran at roughly 29% of the 20-day average, the data show, while daily short-sale ratios on the stock ranged between 0.25 and 0.44 over the ten sessions to 3 September, according to FINRA figures.
Investors will now watch for the formal close of the EPC Power transaction in the fourth quarter of this year, followed by the mechanics of the CPI spin-off Flex has pencilled in for the first quarter of 2027.
This article is for information only and is not investment advice or a recommendation to buy or sell any asset. Markets move quickly; figures are correct as sourced at the time of writing. Always do your own research before making financial decisions.
