Flex Ltd. FLEX has completed its acquisition of EPC Power, a provider of intelligent power conversion solutions for data centers and grid applications. The acquisition strengthens Flex's Cloud and Power Infrastructure (CPI) portfolio by adding advanced power conversion and grid-forming technologies to its existing capabilities across power, cooling and compute.
EPC Power combines proprietary hardware, software and control systems with U.S.-based engineering and manufacturing capabilities. Its technology supports grid stabilization and backup power, with more than 15 gigawatts (GW) deployed. The company's platform is also designed to support next-generation 800-volt data center power architectures.
Management highlighted that EPC Power's technologies complement the company's existing portfolio, helping customers address the increasing AI infrastructure power requirements through more efficient, resilient and integrated solutions.
Flex Strengthens Its AI Infrastructure Portfolio
The acquisition follows Flex's ongoing investments in electrical infrastructure and data center technologies. During first-quarter fiscal 2027, management stated growing customer discussions around integrating power, cooling and next-generation computing technologies.
Flex is currently working on 400-volt power programs, followed by 800-volt architectures. Management indicated that these technology transitions were progressing as planned, with no significant limitations anticipated for its fiscal 2027 and 2028 outlooks.
The company's CPI segment generated $2.2 billion in first-quarter fiscal 2027 revenues, representing 35% year-over-year growth. The increase was driven by strong performance in power, alongside the continued ramp-up of new cloud and cooling programs. Adjusted operating income reached $214 million, with an operating margin of 9.7%.
Flex expects CPI revenues to grow 65% to 75% in fiscal 2027, supported by both cloud and power operations, with power anticipated to grow faster than cloud.
Meanwhile, Flex plans to separate CPI into an independently traded company, Axiom Solutions International, Inc., in the first quarter of calendar 2027. EPC Power will be part of the segment ahead of this planned separation.
Flex is gaining from the AI and data center buildout, alongside growth in industrial and communications. The company raised its fiscal 2027 revenue guidance to $33.7-$35.2 billion from $32.3-$33.8 billion.
On its last earnings call, the company projected 65-75% revenue growth in its Cloud and Power Infrastructure business, while free cash flow conversion was expected to decline to approximately 40% from 60%, primarily due to one-time separation costs.
Taking a Look at FLEX’s Competitors
Jabil Inc. JBL is gaining from strong AI infrastructure demand, expanding hyperscale relationships and rising investments in compute, networking, power and cooling solutions. The company’s Intelligent Infrastructure business is expected to drive growth, supported by increasing data center spending and higher-value manufacturing opportunities. Diversification across healthcare, automotive, energy infrastructure, defense and robotics further strengthens its growth prospects. Jabil’s asset-light manufacturing model, improving operating margins and robust free cash flow support capacity expansion and shareholder returns.
Celestica CLS is gaining from robust AI-driven demand, rising data center investments and growing demand for high-speed networking and cloud infrastructure solutions. Its Connectivity & Cloud Solutions segment remains a key growth driver, supported by strong hyperscale customer demand and advanced networking products. Celestica is expanding its high-value product portfolio through innovation and collaborations, while strengthening manufacturing and engineering capabilities.
Vertiv VRT is gaining from rising AI data center investments, increasing demand for power and cooling solutions, and expanding integrated infrastructure offerings. Vertiv is strengthening its portfolio through strategic acquisitions, including ThermoKey, PurgeRite, King Environmental Services and the planned acquisition of UtilityInnovation Group, enhancing its thermal management, fluid services and power infrastructure capabilities. Strong demand across the Americas and the Asia Pacific, improving EMEA performance, favorable pricing and operating efficiencies support growth.
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