Flex Ltd. Announces $4.4B Acquisition of EPC Power

What Happened Flex Ltd. (FLEX) filed an 8-K on Sept. 4, 2026 disclosing a Stock Purchase Agreement dated Sept. 3, 2026 under which its wholly owned subsidiary ACS Acquisitions, Inc. (the Purchaser) will acquire all equity of EPC Power Corp. from Charge Parent, LLC for aggregate cash consideration of $4.4 billion (subject to customary adjustments). Flex is a guarantor of the Purchaser’s obligations. The agreement uses a "locked box" enterprise value fixed as of June 30, 2026, and the transaction is expected to close in Q4 2026, subject to regulatory clearances (including Hart‑Scott‑Rodino) and other customary conditions. Flex also filed a press release and investor presentation with the 8‑K.

Key Details

• Purchase price: $4.4 billion in cash at closing (subject to adjustments).
• Locked box date: June 30, 2026 (protections against leakage between that date and closing).
• Timing & termination: Target close Q4 2026; either party may terminate if not closed by Dec. 31, 2026 (with up to two automatic three‑month extensions in certain circumstances).
• Bridge financing: Flex entered a commitment letter for a senior unsecured 364‑day bridge facility up to $4.4 billion with Citigroup and Bank of America to fund the deal if permanent financing isn’t in place; Flex intends to replace the bridge with longer‑term debt/equity before or after closing.

Why It Matters The acquisition will be integrated into Flex’s Cloud and Power Infrastructure business, which Flex plans to separate into an independent publicly traded company (SpinCo) in Q1 2027. For investors, this is a material strategic move that may affect Flex’s capital structure, cash needs and the assets that will sit in the planned SpinCo. The transaction remains subject to closing conditions, regulatory approval and customary risks; Flex’s 8‑K also cautions that representations in the purchase agreement are contractual and not guarantees of facts. Investors should monitor completion timing, financing plans, and subsequent filings (proxy statement, Form 10 for SpinCo) for further details.