Key insights
- Flex's acquisition of Electrical Power Products enhances its Critical Power business, supporting growth in grid modernization, electrification, and data center infrastructure. While the financial terms are undisclosed, the acquisition adds to Flex's capabilities and market position. InvestingPro analysis suggests FLEX is currently overvalued, but the acquisition is a slightly positive signal for long-term growth.
AUSTIN, Texas - Flex (NASDAQ:FLEX) announced today the completion of its acquisition of Electrical Power Products, Inc., a provider of engineered-to-order electrical power control and protection systems.
The acquisition adds engineered-to-order capabilities to Flex’s Critical Power business, according to a press release statement. EP², based in Des Moines, Iowa, manufactures control and relay panels and modular control buildings for utility, power generation and data center customers.
The company brings more than 35 years of experience in designing and manufacturing power control equipment. EP²’s employees, leadership and facilities will be integrated into Flex’s Embedded and Critical Power business segment.
"This acquisition strengthens our Critical Power platform and supports our strategy to meet growing demand for resilient electrical infrastructure," said Revathi Advaithi, Chief Executive Officer of Flex. "EP²’s engineering expertise, customer-focused culture, and utility-grade solutions further enhance our power portfolio."The acquisition comes as Flex, valued at $33.7 billion, has delivered a remarkable 150% return over the past year, with shares trading at $91.70. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value, though the company remains a prominent player in the Electronic Equipment, Instruments & Components industry.
The transaction adds a Midwest manufacturing presence to Flex’s operations. The company stated the acquisition supports applications in grid modernization, electrification and data center infrastructure.
Flex operates manufacturing facilities across 30 countries and provides supply chain solutions and lifecycle services to customers. Financial terms of the acquisition were not disclosed in the announcement.For deeper insights into Flex’s strategic positioning and financial health, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Flex has announced a definitive agreement to acquire Electrical Power Products, Inc. for approximately $1.1 billion in cash. The acquisition deal includes anticipated tax benefits valued at around $0.1 billion, which would bring the net cost to about $1.0 billion after tax benefits. Flex expects this acquisition to positively impact its adjusted earnings per share in the first full fiscal year after closing. In terms of earnings, the company achieved an adjusted operating margin of 6.5% in its third quarter of fiscal 2026, setting a new company record. This milestone was reached a year ahead of previously established long-term targets.
Additionally, Stifel has raised its price target on Flex shares to $95, citing the company’s margin strength while maintaining a Buy rating. BofA Securities has reiterated its Buy rating and $75 price target following the acquisition announcement. In another development, Flex and Teradyne Robotics have expanded their manufacturing partnership to include robotics manufacturing and deployment across global facilities. Flex has also unveiled new AI infrastructure designs using NVIDIA technology, aimed at reducing deployment timelines by up to 30% compared to traditional methods.
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