Flex completes $4.4 billion purchase of EPC Power
The deal is funded with a $3.3 billion term loan, a $1.1 billion bridge loan and cash on hand, while a $2.0 billion preferred investment in Axiom is still pending.
Key takeaways
- Flex Ltd. (FLEX) completed its acquisition of EPC Power Corp. for $4.4 billion in cash on Oct. 14, 2026, the company said in a regulatory filing. The purchase price is subject to customary adjustments. The deal was funded with borrowings under a $3.3 billion credit facility, a $1.1 billion bridge loan and cash on hand.
Flex Ltd. (FLEX) completed its acquisition of EPC Power Corp. on Oct. 14, the company said Wednesday in an 8-K filing. The company paid $4.4 billion in cash, subject to customary adjustments.
The deal was agreed on Sept. 3 under a stock purchase agreement with the seller, Charge Parent, LLC. The buyer was ACS Acquisitions, Inc., a wholly owned subsidiary of Flex.
EPC Power is now part of Flex's Cloud and Power Infrastructure business. The company plans to separate that business into an independent public company, Axiom Solutions International, Inc., in the first calendar quarter of 2027.
Chief Executive Officer Revathi Advaithi said in the company's press release: "We are pleased to welcome the EPC Power team to Flex. EPC Power adds differentiated power conversion and grid-forming technology to our capabilities across power, cooling and compute."
EPC Power combines proprietary hardware, software and controls with U.S.-based engineering and manufacturing. The company said its technology has more than 15 GW deployed and supports grid stabilization and backup power.
The platform is engineered to support next-generation 800V data center power architectures.
The purchase uses a locked box mechanism, which fixes the enterprise value of EPC Power as of June 30, 2026. The seller and EPC Power agreed to customary protections against leakage of value between that date and closing, subject to permitted leakage exceptions.
Flex paid the consideration with borrowings under a senior term loan credit facility, borrowings under a senior bridge term loan facility and cash on hand. The company borrowed $3.3 billion under the term loan facility and $1.1 billion under the bridge facility, each in a single advance on Oct. 14.
The term loan agreement, dated Sept. 29, has Citibank, N.A. as administrative agent. The bridge agreement, dated Oct. 9, also has Citibank as administrative agent.
Both loans mature on Oct. 13, 2027, 364 days after funding. Both bear floating interest at either Term SOFR or a base rate, plus a margin set by the company's senior unsecured debt ratings.
The company must prepay the term loan when Axiom funds a term loan of its own tied to the spin-off.
Separately, on Oct. 2, Axiom and Flex entered into a Series A Convertible Preferred Stock investment agreement with GC Venture XIII (ASI), L.P. and other investors. The investors agreed to buy 200,000 shares at $10,000 each, or $2.0 billion in total.
Closing remains subject to customary conditions, including expiration or termination of the Hart-Scott-Rodino waiting period and other required regulatory approvals. The 8-K does not give a closing date for the preferred investment.
Axiom expects to use the net proceeds, among other things, to repay borrowings Flex incurred for the deal.
Flex filed a proxy statement on Oct. 5 seeking shareholder approval of spin-off-related proposals. Axiom has filed a registration statement on Form 10 with the Securities and Exchange Commission covering its common stock.