Flex Expands Data Center Power Portfolio With $4.4 Billion Epc Power Deal

Flex Ltd. (NASDAQ:FLEX) shares are trading higher during Friday’s premarket session. On Thursday, the company agreed to acquire EPC Power for $4.4 billion, subject to customary adjustments.

The agreement will add power conversion capabilities, including grid-forming technology, aimed at data center and utility applications.

Details

EPC Power provides intelligent power conversion solutions for data centers and grids, with more than 15 GW deployed across 62 countries and U.S. manufacturing capacity expected to exceed 30 GW in 2027.

Its technology supports next-generation 800V data center architectures, including rectifiers, DC-DC conversion and planned solid-state transformers, complementing Flex’s power, cooling and compute portfolio.

The company expects the deal to close in the fourth quarter of 2026.

Synergies & Benefits

EPC Power will join Flex’s Cloud and Power Infrastructure (CPI) segment, which Flex plans to separate into an independent publicly traded company in the first quarter of 2027.

The acquired company is expected to generate approximately $800 million in 2026 revenue, with organic growth of approximately 40% in 2027 and EBITDA margin expanding to approximately 30%.

Flex expects to finance the acquisition through a combination of debt and equity, subject to customary regulatory approvals and closing conditions.

As of June 26, 2026, Flex cash and cash equivalent stood at $2.84 billion.

FLEX Earnings Preview And Analyst Price Targets

Looking further out, the next major catalyst for the stock arrives with the October 28, 2026 (estimated) earnings report.

• EPS Estimate: $1.04 (Up from 79 cents YoY)
• Revenue Estimate: $8.18 Billion (Up from $6.80 Billion YoY)
• Valuation: P/E of 41.7x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $124.43. Recent analyst moves include:

• Goldman Sachs: Buy (Lowers Target to $154.00) (July 30)
• Barclays: Overweight (Lowers Target to $144.00) (July 30)
• Barclays: Overweight (Raises Target to $203.00) (June 4)

FLEX ETF Exposure: Funds With The Biggest Positions

• John Hancock Multifactor Mid Cap ETF (NYSE:JHMM): 0.67% Weight
• Avantis US Mid Cap Value ETF (NYSE:AVMV): 1.26% Weight
• Avantis US Mid Cap Equity ETF (NYSE:AVMC): 0.54% Weight

Significance: Because FLEX carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

FLEX Stock Price Activity: Flex shares were up 1.47% at $109.48 during premarket trading on Friday, according to Benzinga Pro data.

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