EPC Power Announces Sale to Flex for $4.4 Billion

Flex plans to buy EPC Power for $4.4 billion to deepen its AI data center and grid power solutions once closing conditions are met.

Rhea-AI Summary

EPC Power signed a definitive agreement to be acquired by Flex (NASDAQ: FLEX) for $4.4 billion, with closing expected in the fourth quarter of 2026, subject to customary regulatory approvals and other conditions.

Upon completion, EPC Power will operate within Flex’s Cloud and Power Infrastructure segment, combining its software-defined power conversion and Agile Grid Forming™ technologies with Flex’s power and thermal management portfolio. Management and investors highlight EPC Power’s role in enabling higher-density AI data centers, grid modernization, and expanded U.S. manufacturing capacity to support rising power demand and grid resilience.

Positive

• Definitive $4.4 billion acquisition agreement expands Flex’s Cloud and Power Infrastructure portfolio with EPC Power’s power conversion platform
• EPC Power’s 800-volt data center architectures and Agile Grid Forming™ tech enhance solutions for high-density AI workloads and grid support
• EPC Power reports nearly tenfold growth in its domestic U.S. manufacturing footprint over the past four years

Negative

• Transaction closing is subject to regulatory approvals and other customary conditions, with completion only expected in Q4 2026

Market Context

The August 6 financial-results announcement carried a 0.68% 24-hour reaction, a useful historical co...

Analysis

The August 6 financial-results announcement carried a 0.68% 24-hour reaction, a useful historical comparison for this acquisition announcement. Regulatory approvals and fourth-quarter timing remained stated watch items, alongside recent insider net selling of 1,025 shares.

Key Figures

Transaction value: $4.4 billion Expected closing: Q4 2026 Data center architecture: 800-volt +5 more

8 metrics

Transaction value $4.4 billion Definitive agreement for Flex acquisition

Expected closing Q4 2026 Subject to customary closing conditions and regulatory approvals

Data center architecture 800-volt Next-generation power architectures

Manufacturing footprint Nearly tenfold Expansion over the last four years

Investment start 2021 Cleanhill Partners first invested in EPC Power

Operating period Four years Period referenced by EPC Power's CEO

Company history Five years Period referenced by Cleanhill Partners

Industry horizon Next decade Grid resilience and data center power demand

Historical Context

5 past events · Latest: Aug 28 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 28	AI platform financing	Positive	-0.7%	Owner announced a $240 million financing round led by Goldman Sachs Alternatives.
Aug 20	Board appointment	Positive	-1.9%	Divcon appointed data center executive Tom Ray as an independent director.
Aug 06	Financial results	Positive	+0.7%	Goldman Sachs BDC reported quarterly results, dividends, and a $75 million repurchase authorization.
Aug 04	Reinsurance partnership	Positive	+2.5%	Talcott and Goldman Sachs established West Grove Re after an approximately $1 billion capital raise.
Jul 31	Construction loan	Positive	-0.6%	BFC Partners and SAA Canopy Group closed a $269 million construction loan.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

GS-linked news reactions were mixed, ranging from a 1.88% decline to a 2.52% gain over 24 hours.

Key Terms

power conversion, solid-state transformers, microgrids

3 terms

power conversion technical

"EPC Power's Intelligent Power Conversion Solutions Directly Address"

Power conversion is the process of changing electrical energy from one form to another—altering voltage, current type (AC to DC or vice versa), frequency, or waveform—using equipment such as transformers, inverters and rectifiers. For investors, it matters because the efficiency, cost, reliability and regulatory compliance of these systems affect product performance, operating expenses and capital investment needs for companies in energy, manufacturing and electronics, similar to how a gearbox affects a vehicle’s efficiency.

solid-state transformers technical

"digital rectifiers and solid-state transformers, enable more efficient power delivery"

A solid-state transformer is an electrical device that uses power electronics instead of heavy metal coils to change voltage and steer electricity, acting like a digitally controlled, much lighter version of a traditional transformer. For investors, it matters because these units can boost efficiency, add fast remote control and protection features, and enable modern grid uses — such as electric-vehicle charging and renewable energy integration — which can change infrastructure costs and create new technology markets.

microgrids technical

"on-site energy storage, microgrid and grid-support configurations"

A microgrid is a small, localized electricity system that can operate connected to the main power grid or independently, like a neighborhood having its own backup power plant. For investors, microgrids matter because they can reduce energy costs, improve reliability during outages, enable sale of surplus power or grid services, and benefit from policy incentives — all of which can create steady revenue streams and lower operating risk for businesses and communities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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EPC Power's Intelligent Power Conversion Solutions Directly Address the Fundamental Challenges of an Aging U.S. Power Grid Supporting the Energy Demand Supercycle and the AI Era

POWAY, Calif., Sept. 3, 2026 /PRNewswire/ -- EPC Power Corp. ("EPC Power"), a leading North American designer and manufacturer of high-performance, software-defined power conversion solutions for data centers, utility-scale energy storage, and microgrids, today announced it has entered into a definitive agreement to be acquired by Flex (NASDAQ: FLEX) for $4.4 billion. The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals, and is expected to close in the fourth quarter of 2026. Building on the two companies' existing collaboration, EPC Power will become, upon closing, a business within Flex's Cloud and Power Infrastructure segment.

The transaction brings EPC Power's differentiated power conversion technology platform to Flex's broad portfolio of power and thermal management technologies for mission-critical applications. EPC Power's next-generation 800-volt data center power architectures, including digital rectifiers and solid-state transformers, enable more efficient power delivery for higher-density AI infrastructure and extend leadership with Flex into an integrated grid-to-chip portfolio. The combined company is positioned to help solve one of the most pressing challenges facing the technology and energy industries today: delivering the fast, resilient and secure power that AI data centers need while supporting stable grid operations amid a generational surge in power demand.

"What we accomplished over the last four years demonstrates the power of strong partnerships and a shared commitment to innovation. Together with Goldman Sachs Alternatives and Cleanhill Partners, EPC Power emerged as a U.S. technology leader in power conversion solutions that enable the next generation of data centers, AI computing, and grid modernization. We expanded our domestic manufacturing footprint nearly tenfold, strengthening America's industrial base and reinforcing the critical role of U.S. innovation in powering the future economy. This is only the beginning of what EPC Power can accomplish," said Jim Fusaro, Chief Executive Officer of EPC Power.

"This is a landmark moment for EPC Power and every colleague who helped build this company. When we founded EPC Power, we set out to solve the hardest problems in power electronics, and our partnership with Goldman Sachs Alternatives and Cleanhill Partners enabled us to solve those problems for mission-critical infrastructure globally," added Devin Dilley, Co-Founder, President and Chief Innovation Officer of EPC Power.

Solving the Binding Constraint on AI Infrastructure

Power availability has become the gating factor for data center growth. As AI workloads drive unprecedented increases in power density, resilience and control requirements, operators must address speed-to-power and load volatility, where the rapid, large-swing power draw of AI training and inference clusters can destabilize the local grid.

EPC Power's technology is purpose-built for these conditions. The company's solutions, including its Agile Grid Forming™ technology, deliver performance and reliability that enables on-site energy storage, microgrid and grid-support configurations for data centers, which allow operators to energize capacity faster and ride through grid instability. Grid operators and utilities benefit from stronger reliability and power quality across their networks.

"We are immensely proud of our partnership with Jim, Devin and the EPC Power team that saw the company launch new product platforms, increase domestic U.S. manufacturing and partner with customers to solve novel challenges in AI power architecture. EPC Power plays a critical role in supporting grid reliability and speed to power during a period of growing concerns around energy security. We wish Flex and the EPC team continued success during their stage of growth," said Alexander Mass, Global Co-Head of Energy Transition Investing within Private Equity at Goldman Sachs Alternatives.

"As grid resilience and data center power demand have converged into one of the defining challenges of the next decade, it has been a privilege to support EPC Power's operational and commercial scale-up into a global platform positioned at the center of those megatrends," added Eddie Sigman, Investor within Private Equity at Goldman Sachs Alternatives.

"We first invested in EPC Power in 2021 because we believed power conversion would become a critical enabling technology as renewable generation, grid modernization and digital infrastructure converged. That conviction came well before the extraordinary growth in power demand driven by AI. Since then, we have had the privilege of working closely with Jim, Devin and the EPC team as the company grew, expanded its U.S. manufacturing footprint and created high-quality jobs in the U.S. We are proud to have supported EPC from an early stage and, in its next phase, alongside Goldman Sachs Alternatives as the business entered a new period of growth. Seeing what the team has built over the past five years has been incredibly rewarding, and we believe Flex is the right partner for EPC's next chapter," said Ash Upadhyaya and Rakesh Wilson, Managing Partners at Cleanhill Partners.

Goldman Sachs & Co. LLC. and J.P. Morgan Securities LLC served as financial advisors, and Vinson & Elkins LLP served as legal counsel, to EPC Power and its controlling shareholders Goldman Sachs Alternatives and Cleanhill Partners.

About EPC Power

EPC Power Corp. (EPC Power) is a power solutions platform that develops high-performance power conversion systems for mission-critical applications, including data centers, utility-scale energy storage, and microgrids. EPC Power's solutions are designed to deliver reliable, resilient, and secure energy for demanding applications, including AI-driven workloads and grid stability use cases supported by EPC Power's Agile Grid Forming™ technology. Visit EPCPower.com for more information.

About Flex

Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps leading brands design, build, and manage products that improve the world. With a global footprint spanning 30 countries, Flex delivers advanced manufacturing and supply chain solutions, innovative products and technology, and lifecycle services that support customers from concept to scale. In the AI era, Flex is helping customers accelerate data center deployment by solving power, heat, and scale challenges through cutting-edge power and cooling technology and scalable IT infrastructure solutions. For information about Flex's intent to spin off its Cloud and Power Infrastructure portfolio, visit: https://flex.com/transaction-resources 

About Private Equity at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $706 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, venture capital, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has more than $4.0 trillion in assets under supervision globally as of June 30, 2026.

Established in 1986, Private Equity at Goldman Sachs Alternatives has invested over $75 billion since inception. The business combines a global network of relationships, unique insight across markets, industries and regions, and the worldwide resources of Goldman Sachs to build businesses and accelerate value creation across its portfolios.

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About Cleanhill Partners

Cleanhill Partners is a private equity firm focused on energy transition and digital infrastructure. The firm invests in companies across power generation, energy storage, grid modernization, domestic manufacturing and related technologies that support the growing demand for reliable power.

Cleanhill works closely with management teams to help companies scale and build long-term value. The firm is led by investors and operators with more than two decades of experience across. For more information, visit www.cleanhillpartners.com.

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SOURCE EPC Power

FAQ

What did Flex announce regarding EPC Power in September 2026?

Flex announced a definitive agreement to acquire EPC Power for $4.4 billion. EPC Power is a North American designer and manufacturer of high-performance, software-defined power conversion solutions for data centers, utility-scale energy storage, and microgrids.

How much is Flex paying to acquire EPC Power and what are the terms?

Flex agreed to acquire EPC Power for $4.4 billion under a definitive agreement. The deal is expected to close in the fourth quarter of 2026, subject to customary closing conditions, including required regulatory approvals.

When is the Flex acquisition of EPC Power expected to close?

The acquisition of EPC Power by Flex is expected to close in the fourth quarter of 2026. Completion depends on customary closing conditions being satisfied, including receipt of required regulatory approvals.

What will happen to EPC Power after the Flex (FLEX) acquisition closes?

After closing, EPC Power will become a business within Flex’s Cloud and Power Infrastructure segment. Its power conversion technology platform will be integrated with Flex’s existing power and thermal management solutions for mission-critical applications.

How does EPC Power’s technology support AI data centers and grid stability?

EPC Power’s next-generation 800-volt data center architectures, including digital rectifiers and solid-state transformers, provide more efficient power delivery for high-density AI infrastructure. Its Agile Grid Forming™ technology enables on-site storage and microgrids that help data centers ride through grid instability and support grid reliability.

What role does Goldman Sachs (GS) play in the EPC Power sale to Flex?

Goldman Sachs Alternatives is a controlling shareholder of EPC Power and, together with Cleanhill Partners, supported its growth and U.S. manufacturing expansion. Goldman Sachs & Co. LLC also served as a financial advisor to EPC Power and its controlling shareholders in the Flex transaction.

Which advisors worked on the Flex acquisition of EPC Power?

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC served as financial advisors to EPC Power and its controlling shareholders, Goldman Sachs Alternatives and Cleanhill Partners. Vinson & Elkins LLP served as legal counsel on the transaction.