Flex Ltd. has completed the acquisition of EPC Power, a Delaware corporation, for a total purchase price of $4.4 billion in cash. The transaction, finalized on October 14, 2026, was structured with a "locked box" mechanism, fixing the enterprise value as of June 30, 2026, subject to customary adjustments for permitted leakage between that date and the closing.
To fund the acquisition, Flex entered into two new credit agreements with Citibank, N.A. acting as administrative agent. The first agreement, a Bridge Credit Agreement, provides a senior bridge term loan facility with an aggregate committed amount of $1.1 billion. On October 14, 2026, Flex borrowed the full $1.1 billion under this facility in a single advance.
The second agreement is a Credit Agreement providing a senior term loan facility with an aggregate committed amount of $3.3 billion. On the same date, Flex borrowed $3.3 billion under this facility to pay a portion of the acquisition consideration and related fees. Both facilities mature on October 13, 2027, exactly 364 days after funding.
Loans under both facilities bear interest at a floating rate, which Flex may choose between Term SOFR or the Base Rate, plus an applicable margin determined by the company's senior unsecured long-term debt ratings. The agreements include customary covenants, such as a Debt/EBITDA Ratio not exceeding 4.50 to 1.00 and an Interest Coverage Ratio of not less than 3.00 to 1.00.
Flex plans to separate its Cloud and Power Infrastructure business, which now includes EPC Power, into an independent publicly traded company named Axiom Solutions International, Inc., in the first quarter of 2027. Additionally, Flex has entered into a separate agreement to sell 200,000 shares of Series A Convertible Preferred Stock in Axiom to investors for an aggregate purchase price of $2.0 billion, subject to regulatory approvals.
