The deal brings EPC Power—a provider of mission-critical power conversion for grids and data centers—directly into the fold ahead of a planned public spin-off. Flex Chief Executive Revathi Advaithi pointed to a generational shift in power density requirements as the primary catalyst for the move, noting that the combination of existing compute and cooling assets with EPC’s hardware creates a more integrated product for digital infrastructure clients.

Financial performance at EPC remains robust, with the firm currently tracking toward $800 million in annual revenue and projecting 40% organic growth in the coming year. Flex intends to fund the transaction through a mix of debt and equity, with the acquisition set to close by late 2026. The subsequent spin-off of the combined infrastructure unit is scheduled for the first quarter of 2027, a move intended to enhance the margin profile of the new standalone entity.