Flex’s $4.4 billion EPC Power deal sets up 2027 spin-off

Tom Gallagher · 2026-09-04T03:20:17.360Z

Grid-forming inverters are actually a real need with all these AI data centers straining the grid, so the tech makes sense even if the price tag seems steep.

7 sourcesUpdated Sep 4, 2026

Flex has agreed to buy EPC Power for $4.4 billion, aiming to address a growing “power bottleneck” in AI data centers caused by rapid electricity load swings that can destabilize grids and trip equipment. EPC Power supplies grid-forming inverters and related power-conversion technology that stabilizes voltage in milliseconds, and Flex plans to integrate the company into its Cloud and Power Infrastructure segment. The deal is expected to close in the fourth quarter of 2026, after which EPC Power will remain under Flex for only about two months before Flex spins off the Cloud and Power Infrastructure business as a standalone public company in early 2027. Flex says the acquisition supports a shift to next-generation, higher-density data-center power architectures and expects it to improve the growth and margin profile of the segment. One valuation-focused view argues Flex’s stock appears priced above estimated intrinsic value and notes limited insider buying, suggesting investors should weigh execution risk alongside potential strategic benefits. Overall, the move signals Flex’s bet that power-conditioning hardware will be as critical as GPUs for scaling AI infrastructure.

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Chris Dalton1h
Spinning off a company two years after buying it feels like financial engineering more than strategy, wonder who's really benefiting here.
Tom Gallagher1h
Grid-forming inverters are actually a real need with all these AI data centers straining the grid, so the tech makes sense even if the price tag seems steep.

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