Flex (NASDAQ: FLEX) has introduced a definitive settlement to amass Crown Technical Programs for $325 million in money, a transfer anticipated to boost Flex’s place within the increasing utility energy and knowledge middle sectors. This acquisition aligns with Flex’s long-term technique of rising its energy distribution and safety portfolio, significantly within the U.S. knowledge middle market, which is seeing rising demand for environment friendly, scalable energy options.
Crown Technical Programs, with practically 30 years of expertise within the trade, is understood for its experience in medium voltage switchgear, management programs, and modular options. The corporate operates out of areas in California, Texas, and Canada, serving a various vary of shoppers, together with utilities, knowledge facilities, and energy technology companies. Its deep data and confirmed observe file in addressing complicated energy distribution challenges have made it a trusted accomplice throughout a number of crucial infrastructure sectors.
By integrating Crown’s capabilities, Flex features entry to superior energy distribution applied sciences which are very important for contemporary knowledge facilities, significantly in addressing points like warmth administration, energy scaling, and system safety.
Flex CEO Revathi Advaithi emphasised that the acquisition reinforces the corporate’s dedication to fixing these key challenges within the knowledge middle area whereas supporting its broader technique to offer end-to-end options by means of its EMS (Electronics Manufacturing Companies), product, and repair choices. Advaithi expressed confidence that the deal will ship long-term shareholder worth.
Modular Information Facilities, Medium Voltage Energy Distribution
Crown Technical Programs President Norm Siddiqui sees the acquisition as a strategic win for each corporations. “This deal brings collectively complementary merchandise and groups, marking an excellent end result for Crown’s workers and clients. We’re excited to affix the Flex workforce and speed up development by means of Flex’s international attain and powerful presence in markets equivalent to knowledge facilities,” Siddiqui famous.
The acquisition would strengthen Flex’s presence in high-growth industries like medium voltage power distribution and modular knowledge middle improvement, sectors which are important to the continuing enlargement of world digital infrastructure. It will additionally help Flex’s transfer into the utility energy market, which is being pushed by long-term developments such because the modernization of energy grids and elevated vitality manufacturing. With Crown’s integration, Flex goals to leverage these trade shifts to additional bolster its energy options portfolio.
Crown Technical Systems is predicted to generate roughly $120 million in gross sales throughout the fiscal 12 months ending March 31, 2025, with EBITDA margins within the excessive teenagers. The deal is projected to shut by December 2024, pending regulatory approvals and different customary situations.
