Flex Announces $1.1 Billion Acquisition To Boost Power Infrastructure Capabilities

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Flex Ltd. is a diversified manufacturing partner with a growing focus on AI infrastructure, cloud computing, and power solutions. With strategic acquisitions enhancing its capabilities, strong positioning as an enabler of AI-driven energy demand, and improving financial performance, the company offers meaningful upside potential as it continues to benefit from structural growth in data center and power infrastructure markets.

On March 30, Flex Ltd. announced a definitive agreement to acquire Electrical Power Products for approximately $1.1 billion in cash, a transaction expected to be accretive to adjusted EPS within the first full fiscal year post-close.

The acquisition enhances Flex’s exposure to power infrastructure markets, adding a business with anticipated revenue of approximately $323 million and a mid-to-high teens EBITDA margin profile, while also strengthening its capabilities in engineered power control systems critical for utilities, industrials, and data centers.

Previously, on March 12, Baird initiated coverage of Flex Ltd. with an Outperform rating and a $70 price target, highlighting the company’s improving growth and margin profile. The firm pointed to Flex’s power segment as particularly attractive, given its role in supporting increasing energy demands driven by AI infrastructure, and it foresees a clear pathway for further margin expansion as the business mix shifts toward higher-value segments.