Flex, the Austin-based manufacturer, announced Friday that it has agreed to pay $4.4 billion for EPC Power, a provider of power infrastructure and conversion systems.
Flex plans to enhance its data center infrastructure business by integrating EPC Power with its cloud and power infrastructure unit, spinning the combination off with an initial public offering in early 2027.
Vinson & Elkins advised EPC Power led by partners Peter Marshall and Sang Lee in Dallas with Kaam Sahely in Austin.
Flex was advised by Freshfields led by Ethan Klingsberg, Sanjay Murti and Abigail Hathaway in New York.
Founded in 2010 and headquartered in Poway, California, EPC Power specializes in the design and production of hardware and software for multi-source power grid operations central to industrial operations and data center development. Of particular interest to Flex is the development by EPC Power of DC-to-DC conversion technologies that balance and stabilize the diverse and potentially volatile fluctuations in 800-volt power architectures used to drive AI.
EPC Power has more than 15 GW deployed across 62 countries and annual U.S. manufacturing capacity will surpass 30 GW in 2027. The company projects generate revenue of about $800 million in 2026, with expected growth of 40 percent in 2027 coupled with a 30 percent EBITDA margin.
“A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure,” Flex CDO Revathi Advaithi said in the announcement.
“EPC Power brings leading power conversion and grid-forming technology that positions us to capitalize on this shift, delivering 800V power conversion today and building towards solid-state transformers. Together with our existing power, cooling and compute capabilities, this transaction expands our ability to design and deliver digital infrastructure as an integrated system.”
Evercore acted as financial advisor to Flex alongside BofA Securities, Citi and PJ Partners. Goldman Sachs and J.P. Morgan Securities advised EPC Power.
The Texas lawyers from V&E who also advised EPC Power include Hilary Preston and Erik Shallman in Austin with John Frey, Zena Issa, East Berhane, Meghan Dobbins, Brad Rossiter, Kathryn Mays, David Peck, Shane Tucker, Jeff Crough, Sarah Mitchell and Victoria Bahrami-Negad in Dallas.
Advising from Houston: Micah Tardy, Bailey Chauvin, Jackson O’Maley, Walt Baker, Sean Becker, Peter Goetschel, Alexyse Lewis, Madeline O’Neill, Scot Dixon, Matthew Dobbins and Joyce Adetutu.
Benjamin Ofer, Tigist Kassahun and Alexa Chally advised from New York with Lauren Collins from Los Angeles and Hoo Ray in Denver.
Fry Wernick, Kelly Rondinelli, Hill Wellford, Ryan Will, Rami Rashmawi, Randall Johnston, Frankie Velez, Stefanie Jackson, Lara McMahon, Claire Connor and Katherine Galvin provided counsel from Washington, D.C.
Allen Pusey contributed to this report.