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Yahoo Finance | Flex (FLEX) Announces $1.1B Acquisition to Boost Power Infrastructure Capabilities

Flex (FLEX) Announces $1.1B Acquisition to Boost Power Infrastructure Capabilities

Flex Ltd. (NASDAQ:FLEX) announced on March 30 a definitive agreement to acquire Electrical Power Products for approximately $1.1 billion in cash. The transaction is expected to be accretive to adjusted EPS within the first full fiscal year after closing. This acquisition significantly enhances Flex’s presence in the power infrastructure market, adding a business with projected annual revenue of around $323 million and a mid-to-high teens EBITDA margin. It also strengthens Flex’s capabilities in engineered power control systems, which are essential for utilities, industrial operations, and data centers.

The move aligns with Flex’s strategic focus on AI infrastructure, cloud computing, and power solutions. Analysts, including Baird, which initiated coverage on March 12 with an Outperform rating and a $70 price target, have highlighted Flex’s improving growth and margin profile. Baird specifically pointed to the power segment as a key driver, noting its role in meeting rising energy demands fueled by AI expansion and identifying clear opportunities for further margin improvement as the company shifts toward higher-value offerings.

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