Key Takeaways
- • Flex acquires EPC Power from Goldman Sachs Alternatives and Cleanhill Partners for $4.4 billion, marking one of the largest sponsor exits in power electronics this year.
- • EPC Power manufactures inverters that convert direct current to alternating current for grid-scale battery storage, solar installations, and AI data center power systems.
- • The acquisition reflects accelerating demand for grid equipment driven by rapid data center construction and expansion of renewable energy infrastructure.
- • Flex, a contract manufacturer, gains in-house capability it previously sourced externally and positions itself to serve both data center and utility-scale customers.
Summary
Flex has agreed to acquire EPC Power, a San Diego-based power electronics manufacturer, from investment sponsors Goldman Sachs Alternatives and Cleanhill Partners for $4.4 billion. The transaction represents a significant exit for the sponsor consortium and underscores the strategic importance of grid infrastructure in the current investment environment.
EPC Power specializes in inverter technology that converts direct current into alternating current while maintaining voltage and frequency stability across the grid. The company's equipment is deployed across three primary end markets: grid-scale battery storage systems, utility-scale solar installations, and increasingly, the power distribution infrastructure supporting artificial intelligence data centers. This diversified customer base positions the business at the intersection of two powerful secular trends: the energy transition and the accelerating capital deployment into AI infrastructure.
The transaction is notable as one of the larger sponsor-backed exits in the power electronics sector during 2026, reflecting how quickly data center construction has reshaped demand vectors across grid equipment manufacturers. By acquiring EPC Power, Flex transitions from sourcing inverter capability externally to owning the technology in-house, improving margins and supply chain control while positioning the contract manufacturer to capture growth across both utility and data center customer segments. The deal highlights investor appetite for businesses embedded in critical infrastructure supporting grid modernization and AI power delivery—sectors experiencing sustained capital inflows from institutional and alternative investors.
EPC Power specializes in inverter technology that converts direct current into alternating current while maintaining voltage and frequency stability across the grid. The company's equipment is deployed across three primary end markets: grid-scale battery storage systems, utility-scale solar installations, and increasingly, the power distribution infrastructure supporting artificial intelligence data centers. This diversified customer base positions the business at the intersection of two powerful secular trends: the energy transition and the accelerating capital deployment into AI infrastructure.
The transaction is notable as one of the larger sponsor-backed exits in the power electronics sector during 2026, reflecting how quickly data center construction has reshaped demand vectors across grid equipment manufacturers. By acquiring EPC Power, Flex transitions from sourcing inverter capability externally to owning the technology in-house, improving margins and supply chain control while positioning the contract manufacturer to capture growth across both utility and data center customer segments. The deal highlights investor appetite for businesses embedded in critical infrastructure supporting grid modernization and AI power delivery—sectors experiencing sustained capital inflows from institutional and alternative investors.
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