Flex has reached a deal to acquire Crown Technical Systems, a provider of fully integrated power distribution and protection systems for $325 million in an all-cash transaction.
Flex expects the acquisition deal to be accretive in the first year after it closes.
Crown Technical Systems brings nearly 30 years of solving the most pressing power distribution and control challenges.
Crown has extensive capabilities in enclosures, modular solutions, medium-voltage switchgear, control equipment, and relay panels.
The company also has a diverse set of long-standing customers spanning utilities, data centers, and power generation, with facilities in California, Texas, and Canada.
Multi-Faceted Acquistion Benefits
Flex said the acquisition will increase its exposure to fast-growing, margin-accretive end markets, including modular data center adoption and medium-voltage power distribution.
Also, the acquisition 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 and accelerates its growth in the U.S. data center market.
Long-Term Growth Strategy
Crown Technical Systems is expected to generate revenue of approximately $120 million and high-teens EBITDA margin in fiscal 2025, which ends on March 31, 2025.
After meeting customary closing conditions, including regulatory approval, the company said it expects to close the acquisition transaction no later than December 2024.
"The addition of Crown Technical Systems strengthens our position to help customers solve power, heat, and scale challenges in the data center space, which is aligned with our long-term growth strategy," said Revathi Advaithi, CEO of Flex.
Advanced Liquid Cooling Capabilities
Flex is widely known for providing its customers with innovative liquid cooling capabilities at both the board and rack levels, the better to handle the power density requirements and massive amounts of heat generated by AI data centers.
Flex delivers data center rack designs that can integrate single-phase, direct to chip liquid cooling and are also enabled for two-phase liquid cooling processes for data centers.
Such advanced liquid cooling capabilities are available as part of the company's vertically integrated data center rack systems.
All systems are designed, manufactured, delivered and maintained from Flex’s "cloud-focused locations" around the world, as stated on the company's website.
Reflecting the AI data center focus and spirit of collaboration and innovation on display at this month's 2024 OCP Global Summit (Oct. 15-18), Flex and JetCool announced at that event that the companies are now partnering to provide direct-to-chip liquid cooling equipment and services.
