Flex (FLEX, Financials) is aquiring Crown Technical Systems for $325 million in an all-cash deal, the company announced Thursday. Targeted at improving Flex's data center power capacity, the deal is slated to conclude by December 2024.
Known for its power distribution and protection systems knowledge, Crown Technical Systems will help Flex expand in U.S. data centers and enhance its offerings in the utility power sector, according to the announcment Forecasts for the transaction show it to be accretive to Flex's first-year post-closure profits.
Serving a wide client base in utilities and power production for over three decades, the target firm has sites in California, Texas, and Canada. In fiscal 2025, Crown Technical Systems expects to make around $120 million in income and have a high-teens EBITDA margin.
Flex's CEO, Revathi Advaithi, said Crown Technical Systems' integration fits their long-term approach to handling data center sector power, heat, and scalability issues.
Crown Technical Systems President Norm Siddiqui expressed hope regarding the merger's ability to use Flex's worldwide footprint and improve expansion, particularly in data centers.
Flex will provide further specifics on the purchase on its upcoming earnings call.
