Flex Will Pay 4.4 Billion Dollars for EPC Power, Whose 2026 Revenue Is About 800 Million

Flex agreed on September 3 to buy EPC Power Corp. for $4.4 billion, funded with a mix of debt and equity. EPC Power builds utility-scale inverters and data center power conversion gear from Poway, California. The company expects about $800 million of revenue in calendar 2026, so Flex is paying roughly five and a half times this year’s sales. The deal should close in the fourth quarter of 2026.

EPC Power started in 2010 and has more than 15 GW deployed across 62 countries. Goldman Sachs Alternatives and Cleanhill Partners backed it. In July the company opened a 167,000 square foot plant in Fountain Inn, South Carolina. EPC Power says the site nearly tripled its production capacity. The plant starts at 27 GW of annual capacity and can scale to 40 GW. It builds the M and MRACK inverter series. EPC Power puts the job count there at about 275. Flex says EPC Power’s annual US manufacturing capacity will pass 30 GW in 2027.

The 800-volt bet

The stated reason for the price is a change in how AI data centers move power. Racks now draw enough current that 415-volt and 480-volt distribution forces thick copper and high resistive losses. An 800-volt DC architecture carries the same power at lower current, which cuts conductor mass and loss. EPC Power sells digital rectifiers and DC-DC converters built for that architecture. It also sells grid-forming controls it markets as Agile Grid Forming. Solid-state transformers sit on its roadmap and are not shipping.

Flex CEO Revathi Advaithi tied the purchase to that change. “A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure,” she said. EPC Power CEO Jim Fusaro said customers “need power systems that are more intelligent, efficient and resilient.”

Why It Matters

Lead times on medium-voltage conversion gear have been a binding constraint on storage and large-load projects, so the capacity number matters more than the purchase price. The Fountain Inn plant alone is rated at 27 GW a year. Flex projects more than 30 GW of US capacity for EPC Power in 2027. Read together, those two figures put most of a scarce supply line on one site.

Anyone specifying an EPC Power product should also read the spin-off clause. Flex plans to spin off its Cloud and Power Infrastructure segment in the first quarter of 2027. That segment will hold EPC Power. The counterparty on a 2027 purchase order is not the company signing this deal. The growth assumption is steep. Flex guided to about 40% organic revenue growth at EPC Power in 2027, and to EBITDA margins near 30%. Both numbers assume the AI buildout keeps absorbing conversion equipment at the current rate.

Neil Osnato founded Persistence Analytics Group. He said the price signals that power conversion is “moving from a supporting component to a strategic control point in AI infrastructure.” He also warned buyers to test what vendors claim. “Declared capability is not demonstrated capability,” he said.

Critical Perspective

The 2027 case asks for two things at once. Flex guided to about 40% organic revenue growth and to EBITDA margins near 30%, up by double-digit percentage points. Growing that fast usually means taking lower-margin work to fill a new plant. Doing both in the same year is the assumption carrying the price, and Flex has not said which one gives way if AI order rates slow.

The 800-volt thesis is also partly unbuilt. EPC Power ships rectifiers and DC-DC converters today. Solid-state transformers, the part that would move it furthest up the value chain, are on a roadmap. Neil Osnato of Persistence Analytics Group made the same point about vendor claims in general: “Declared capability is not demonstrated capability.” A buyer specifying gear for a 2028 site is buying a roadmap, not a catalogue.

Then there is the question of who stands behind the warranty. Flex intends to spin the Cloud and Power Infrastructure segment out as a separate public company in the first quarter of 2027, roughly one quarter after this deal closes. A contract manufacturer’s balance sheet is part of what a utility or hyperscaler is buying when it commits to a supplier for medium-voltage conversion gear. That balance sheet is scheduled to leave.

Sources

• Flex, Flex to Acquire EPC Power (PR Newswire, September 3, 2026)
• EPC Power Announces Sale to Flex (PR Newswire, September 3, 2026)
• Data Center Knowledge, Flex Pays $4.4B for EPC Power as AI Data Centers Push 800V Architecture (September 4, 2026)
• Solar Power World, Flex to purchase inverter brand EPC Power (September 4, 2026)

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