$325m Flex deal for data centre power
Contract manufacturer Flex is to buy Crown Technical Systems in California for its integrated power distribution and protection systems.
The cash deal, worth $325m, brings Flex modular power systems, medium voltage switchgear, control, and relay products for data centre power, utilities and renewable energy.
This acquisition further increases Flex exposure to fast-growing, margin accretive end-markets including modular data centre adoption and medium voltage power distribution. It also extends Flex’s power portfolio into the utility power market, supported by long-term trends in grid modernization and energy generation growth. At the same time, the acquisition strengthens Flex’s critical power portfolio for the US data centre market.
“The addition of Crown Technical Systems strengthens our position to help customers solve power, heat, and scale challenges in the data center space aligned with our long-term growth strategy,” said Revathi Advaithi, Chief Executive Officer of Flex. “This acquisition reaffirms our commitment to differentiate our value through our EMS + Products + Services strategy that will deliver longer-term shareholder value.”
“This deal brings together complementary products and teams, marking a superb outcome for Crown’s employees and customers,” said Norm Siddiqui, President, Crown Technical Systems. “We are excited to join the Flex team and accelerate growth through Flex’s global reach and strong presence in markets such as data centres.”
Flex this week announced customizable, open standards-based compute reference designs that integrate JetCool’s SmartPlate direct-to-chip liquid cooling solution. JetCool’s patented microconvective cooling technology extends the value of single-phase, direct-to-chip liquid cooling deployments by cooling over 1,500W per socket, providing headroom to accommodate the most advanced AI servers.
Crown Technical Systems is expected to generate revenue of approximately $120m in 2025. The transaction is expected to close no later than December 2024, subject to customary closing conditions, including regulatory approvals.
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