Flex Ltd. Announces $4.4 Billion Acquisition of EPC Power Corp. Ahead of Planned Spin-Off

Executive Summary

On September 3, 2026, Flex Ltd. entered into a definitive Stock Purchase Agreement to acquire EPC Power Corp. through its wholly owned subsidiary, ACS Acquisitions, Inc., for an aggregate cash consideration of $4.4 billion.

Strategic Rationale & Planned Spin-Off

• Cloud and Power Integration: EPC Power will join Flex's Cloud and Power Infrastructure business unit, strengthening its positioning in mission-critical power and clean energy infrastructure.
• Subsequent Spin-Off (SpinCo): Flex previously announced plans to separate the combined Cloud and Power Infrastructure business into an independent, publicly traded entity ("SpinCo") targeted for completion in the first quarter of 2027.

Transaction Structure & Key Terms

• Consideration: $4.4 billion cash at closing, structured under a locked-box mechanism with enterprise value set as of June 30, 2026.
• Guarantor Role: Flex Ltd. serves as guarantor for the purchaser's obligations under the purchase agreement.
• Bridge Financing: Entered into a commitment letter for a $4.4 billion senior unsecured 364-day bridge credit facility with Citigroup Global Markets Inc., Bank of America, N.A., and BofA Securities, Inc., which Flex intends to replace with long-term debt and equity financing.
• Conditions & Timing: Expected closing in Q4 2026, subject to expiration/termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act and customary closing conditions.