Flex completes $4.4 billion EPC Power acquisition, funded partly by $1.1 billion bridge loan

Flex has closed its $4.4 billion cash purchase of EPC Power, adding power conversion technology for AI data centers and the electric grid to the business it plans to spin off early next year, the company said Wednesday in a regulatory filing.

The deal, first agreed Sept. 3, closed Oct. 14. EPC Power is now a wholly owned subsidiary inside Flex’s Cloud and Power Infrastructure segment, which Flex intends to separate into an independent public company, Axiom Solutions International, in the first quarter of 2027.

Flex paid for the acquisition with borrowings under its credit facility, a new bridge loan and cash on hand. The purchase price is subject to customary adjustments.

Flex signed a $1.1 billion senior bridge term loan agreement with Citibank as administrative agent on Oct. 9 and drew the full amount in a single advance on Oct. 14. The loan matures Oct. 13, 2027, carries a floating rate tied to Term SOFR or a base rate, and requires Flex to keep debt-to-EBITDA at or below 4.5 times and interest coverage of at least 3 times.

EPC Power combines its own hardware, software and controls with U.S.-based engineering and manufacturing, and has more than 15 GW of technology deployed, according to Flex. Its platform is designed for next-generation 800-volt data center power architectures.

“EPC Power adds differentiated power conversion and grid-forming technology to our capabilities across power, cooling and compute,” CEO Revathi Advaithi said.

Separately, Flex noted that a previously disclosed $2.0 billion private placement of Axiom convertible preferred stock to GC Venture XIII (ASI) and other investors is still pending, subject to closing conditions including antitrust clearance.

By the numbers

• Purchase price: $4.4 billion in cash, subject to adjustments
• Bridge loan: $1.1 billion, fully drawn, maturing Oct. 13, 2027
• Leverage covenant: debt/EBITDA no higher than 4.5x
• EPC Power deployments: more than 15 GW
• Axiom spin-off target: first quarter of 2027
• Pending Axiom preferred investment: $2.0 billion

Sources

1. Flex Ltd., Form 8-K (Items 1.01, 2.01, 2.03), filed Oct. 14, 2026, accession 0001193125-26-421058.
2. Flex Ltd., Exhibit 99.1, “Flex Completes Acquisition of EPC Power,” Oct. 14, 2026.

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